When applying for life insurance, it's essential to be aware of the potential reasons why you may be denied. A serious medical condition, unsatisfactory results from your medical exam, bankruptcy, criminal record, a positive drug test result, or a hazardous hobby can all influence the decision to deny you coverage. Age discrimination is also a factor, as older adults will have a more difficult time finding the life insurance products they want with reasonable premiums. The medical exam is also an important part of the process, as laboratory tests can detect blood or protein in your urine sample.
Additionally, insurers can determine if your level of alcohol consumption is much higher than “normal” levels. If you work in a dangerous occupation, you may have difficulty finding coverage. Your financial situation is also taken into account when applying for life insurance. It can be beneficial to work with an independent life insurance agent who represents multiple life insurers. They can often compare their situation with insurers known for issuing policies to people in circumstances similar to their own.
It's also important to understand that not all life insurance providers view mental health issues from such a negative perspective. Risky hobbies and an unhealthy lifestyle can also lead to higher rates or denial of coverage. As you get older, life insurance companies will see you as a greater risk. Working in a hazardous field can make it more difficult to get approved for coverage.
Finally, your credit report is reviewed to determine if you have had any previous bankruptcies or outstanding debts.