There are many issue and items that can disqualify you from securing life insurance coverage. A medical condition that actuarially is calculated to shorten the life of the prospective insured to such an extent that the risk is too great to validate a company’s profitability. Hazardous vocations, recreational activities and multiple motor vehicle violations, especially DUIs, can result in disqualification.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What will disqualify you from life insurance? Well depends on you mean by disqualify as there are many forms of life insurance out there at many different price levels. There are guaranteed issue plans, credit life and a few that will insure a person for a very high premium. What you might be asking instead is what will disqualify you from the best possible rates for life insurance? Your health is what will get you very good rates or high rates if your health is poor. There are also possible issues with travel, credit and occupations and hobbies. But, the best price is usually tied to best possible health. You are your discount.
Some things that can disqualify you for all but guaranteed issue life insurance are: very poor health, drug/alcohol abuse, recent bankruptcy. citizenship requirements, income requirements, and a suspended drivers license. Every policy has age parameters that the applicant must meet, and if applying for guaranteed issue life insurance (for which you cannot be disqualified for health or other risk), the minimum age is usually 40+. Children who are intellectually handicapped, have type 1 diabetes, or are born with congenital diseases may not be able to find coverage until they are adults.
That being said, there are life insurance policies of all types and for all types of health and other risk factors. Some states have more options than others. Contact an impaired risk life insurance agent or online agency and you may find that what you thought would disqualify you for life insurance is no problem at all.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
I can give you some examples from cases I have handled. I think you will be surprised.
Many people assume they will not qualify for life insurance, and happily, they are wrong. It takes a lot.
One fellow needed to purchase several million dollars of life insurance to cover a bank loan for his business. His business was a bar/restaurant. The night before his insurance exam, a few of his buddies came by to socialize a bit. They did cocaine.
Of course, he tested positive. No insurance for him.
He probably would have qualified for a guaranteed-issue burial policy. But the $25,000 would not have done him any good. He needed that bank loan. And he needed life insurance to get it. And you know what? He didn’t get the life insurance, and he didn’t get the bank loan.
He would have had to wait a few years before he became eligible again. Five years is the industry standard, but I probably could’ve gotten it for him sooner.
Another candidate – also a business owner – went to rehab for both drug and alcohol addiction. Unfortunately, he didn’t schedule the necessary follow-ups after his treatment. Carriers were worried that a relapse would be right around the corner without the proper support system in place. He will also have to wait a year or two.
Then you have people who have a number of serious illnesses that just aren’t sufficiently controlled. The combination of obesity, heart condition, diabetes, smoking etc. is wicked. I’ve had people come to me with these factors in place, and then some. Has to be some measure of control. Otherwise, you look like a walking timebomb.
These cases are extreme. Other cases seem scary but can be quite placeable.
Pot smoking? You can get a policy.
Bankruptcy? You can get a policy.
On probation for a felony? You can get a policy.
Suspended drivers license? You can get a policy.
Travel to India, or South America, or rural China? You can get a policy.
Mountain climber? You can get a policy.
Deep water scuba diver? You can get a policy.
Of course, a number of important factors need to be in place, but on the overall, it can be done.
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That being said, there are life insurance policies of all types and for all types of health and other risk factors. Some states have more options than others. Contact an impaired risk life insurance agent or online agency and you may find that what you thought would disqualify you for life insurance is no problem at all.
Many people assume they will not qualify for life insurance, and happily, they are wrong. It takes a lot.
One fellow needed to purchase several million dollars of life insurance to cover a bank loan for his business. His business was a bar/restaurant. The night before his insurance exam, a few of his buddies came by to socialize a bit. They did cocaine.
Of course, he tested positive. No insurance for him.
He probably would have qualified for a guaranteed-issue burial policy. But the $25,000 would not have done him any good. He needed that bank loan. And he needed life insurance to get it. And you know what? He didn’t get the life insurance, and he didn’t get the bank loan.
He would have had to wait a few years before he became eligible again. Five years is the industry standard, but I probably could’ve gotten it for him sooner.
Another candidate – also a business owner – went to rehab for both drug and alcohol addiction. Unfortunately, he didn’t schedule the necessary follow-ups after his treatment. Carriers were worried that a relapse would be right around the corner without the proper support system in place. He will also have to wait a year or two.
Then you have people who have a number of serious illnesses that just aren’t sufficiently controlled. The combination of obesity, heart condition, diabetes, smoking etc. is wicked. I’ve had people come to me with these factors in place, and then some. Has to be some measure of control. Otherwise, you look like a walking timebomb.
These cases are extreme. Other cases seem scary but can be quite placeable.
Pot smoking? You can get a policy.
Bankruptcy? You can get a policy.
On probation for a felony? You can get a policy.
Suspended drivers license? You can get a policy.
Travel to India, or South America, or rural China? You can get a policy.
Mountain climber? You can get a policy.
Deep water scuba diver? You can get a policy.
Of course, a number of important factors need to be in place, but on the overall, it can be done.
Surprise!