Can I re-apply if I am declined Life Insurance

Taking out life insurance is a big deal and requires a lot of shopping around. Each company seems to offer something more than the last one, and something less as well. They all have a multitude of forms to fill in, and want to know everything about your lifestyle, present and past.

That’s because each company runs their business in different ways, they have different ways to invest money and they prefer different customers. Some may prefer the stable middle age client, while others are more geared toward family packages.

It is unusual, but not unheard of to be declined coverage based on what you have put in the policy application form. This is usually because a particular answer sent up a red flag for that particular company and they decided that it would not be in their best interest to offer you coverage. Or, to put it another way, they figured that they would lose money in dealing with you.

This does not however mean that you are uninsurable. The first thing you need to do is to get in touch with the life insurance carrier and find out why they declined you coverage, ask for the specifics to be sent to your family doctor.

There are a number of reasons that you may be declined coverage :

  • You are a heavy smoker
  • Your job is regarded as high risk
  • Your regular business travel takes you into a dangerous country
  • Your favourite sport is considered too hazardous
  • Your health is not perfect.

With most of those you have two choices; either change the situation, e.g. get a new job or sport, or go and look for another insurance company. The second of these options raises another problem.

The one thing insurance companies do have in common is the question on their application form; “Have you ever been declined Life Insurance coverage?”.

If the answer to this is “yes”, then you automatically raise a red flag and any insurance company is going to want to know the reason why you were declined; hence your question to the original company. You need to be able to tell a new insurance company exactly why the other one turned you down, with specifics.

You are well advised to mention the fact that you were turned down by another insurance company before you ask for an application form and see what the new insurance company says. If they say that the situation doesn’t affect their policies, then go ahead and fill out the form. If they say they will also probably decline you because of it – do not fill out any form, that would be processed and would be recorded as another declined offer.

If you really cannot find another company that will cover you at an affordable premium, then you are going to have to look at changing the situation.

In most cases if the situation that caused you to be declined in the first place has been removed for more than a year it will no longer affect you and available coverage. For example if you were declined for being a heavy smoker, but have since given up for more than a year, most companies will not worry about the previous refusal of coverage.

When the situation is medical; you have a condition that the initial insurance company thought was too severe to allow you coverage, you are going to need medical proof that the condition has been removed or lessened before approaching another insurance company. You will also probably need a medical examination by a doctor nominated by the new insurance company to satisfy their acceptance criteria.

Finally, if you have removed the situation and approached other companies only to be told yet again that they will probably decline you it is time to call in the experts. Find yourself a good insurance broker. Explain the situation to them, don’t hold back any facts, and let them go and find you some coverage.

The advantage of insurance broker is that they regularly deal with lots of companies, and lots of different insurance requests. So, once they have the facts from you, they will probably know exactly which insurance company will say yes to you and they will be able to set things up for you.

In summary, every one should be able to get life insurance from somewhere. The premiums may vary, but the coverage is out there somewhere. Being declined by one insurance company doesn’t exclude you from being able to get coverage. In fact, it might act as a wake up call to you and nudge you into changing your lifestyle a little, just to get that premium down.

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Why Life Insurance for Children is Important

What many people think about life insurance, they usually don’t think of children? Most people think that life insurance is something for adults. This is because many adults take out life insurance in order to protect their families in case of their early demise. However, there are a number of companies, especially in Canada, that are geared towards providing life insurance for children. Just as many people prefer to make sure that their children are properly prepared for school, there are parents that consider the financial stability of their children and want to make sure that they are okay in the future. In order to do this, some parents seek out life insurance for children. A number of popular Canadian life insurance companies such as Canada Life, BMO Life and Assumption Life all provide life insurance for children at various rates. Those parents that want to know for sure that their children are protected in the future should seriously consider obtaining some form of life insurance for their children.

Why do Children Need Life Insurance?

Even though insurance companies promote life insurance for children through television commercials and pamphlets, not everyone is really sure why children need life insurance. In fact, many financial professionals are split on whether or not life insurance for children is even needed. Those that support the need for children to have some form of life insurance state that it is a way for parents to ensure that their children are properly protected. Since parents have no idea what could happen to them over the course of their children’s lives, having an insurance policy in place for the children is something that is seen as being very security minded. However, there are other financial professionals that believe that life insurance for children in not necessary. It should be noted that some parents that know they have a terminal disease will take out life insurance for their children so that they know their child will be taken care of financially in the future. Ultimately, the decision to obtain life insurance coverage for children is based on the parents’ desire to make sure children are protected financially in the future.

Type of Life Insurance Coverage

When considering life insurance for children, there are several options available. The three main options for life insurance coverage for children include term, whole and universal life insurance. Term life insurance provides coverage at a fixed rate for a certain time period. For example, a parent can purchase life insurance for their children at a term of 25 years. During these 25 years, the parent will pay a fixed rate per month. Whole life insurance is highly preferred by some parents for life insurance for children. This particular type of life insurance covers a child for the duration of their life. With this type of insurance that parent pays a fixed amount usually annually, but this can vary. As long as the premiums are paid, the child will receive coverage for the duration of their life. Finally, there is universal life insurance. This type of life insurance for children is considered to be the most comprehensive of all the insurance that is available. It not only provides insurance coverage for the life of the child but it also has an investment account attached to it which allows the insurance policy to increase in value. No matter which type of life insurance for children is decided upon, it is important that parents really consider which type of coverage they would like their children to have.

Life insurance for children is a very effective way to make sure that youngsters have a firm base of financial security in the future.

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Marijuana and Life Insurance

Various surveys have shown that partaking of Marijuana is quite popular in Canada, not only with the stereotypical student and young users, but with the well to do middle class as well. Some statistics show that over 50% of Canadians believe that the drug should be legalised and taxed like normal cigarettes.

So how does using Marijuana affect your prospects of getting life insurance?

First of all life Insurance companies are going to treat you like a smoker, someone who has a greater chance of contracting some sort of life threatening condition because they inhale smoke on a voluntary basis. Even although medical data has shown that Marijuana is actually safer than cigarettes; which contain dangerous carcinogens, the life insurance company will tar you with the same brush – forgive the pun.

Next, you have to consider your usage of the drug. Is it rare, occasional, or frequent?

If you have smoked Marijuana within the last year, you should still declare it on your life insurance policy application form, and you will probably be given a standard smokers policy.

(A person is considered by insurance companies to be a non-smoker if they haven’t smoked for over a year).

If your use is occasional, then there is no getting away from it – you will be given the more expensive smoker’s policy.

If your use is frequent, your life insurance company are probably going to ask you questions; specifically, “Why”. Most frequent users of Marijuana are using it for medical benefits, which implies that there is an underlying medical condition that your insurance company will want to know about.

This brings us to a thorny subject, telling your life insurance company about your usage. Marijuana is still illegal with the exception of a few places that allow it to be prescribed for medical use. So you are going to have to confirm on a form that you partake in an illegal activity.

This may put a lot of people off, admitting to their usage of an illegal substance.

(If you are asked to complete a life insurance form for a company funded insurance scheme, you should consult with your personnel department and ascertain what level of confidentiality is maintained with regards to the contents of your form).

If you use Marijuana, you must put it on your life insurance application, not because it is illegal not to do so. But because if you die and the medical examination shows that you were a marijuana user your life insurance company is well within its rights to refuse to pay out on your policy. (Similarly if you are a smoker and don’t tell the insurance company, they will refuse to pay if they find out after your death that you were) 

For frequent users you have to be a little more careful, you should use or consult with an life insurance agent before approaching a company with a view to asking for a life insurance policy. An insurance agent will be able to tell you which companies are likely to accept you and which will probably turn you down. You need this information before you apply for a policy because if you are turned down for an insurance policy, you are legally obliged to tell any other insurance company you apply to that you have been turned down for a life insurance policy in the past.

“Have you ever been turned down for Life Insurance ?” is part of a standard life insurance application, and will affect how a life company treats, and charges you.

Some life companies will allow you to ask them if they are likely to turn you down based on the contents of your application, without actually processing the form and generating an official insurance refusal.

So, in conclusion, getting life insurance if you are Marijuana user is not that difficult. You will be expected to pay a standard smokers premium if you are a rare or occasional user. If you use the drug  regularly or for medical reasons then not only will you be placed in the smoker bracket, you will also have to undergo the same procedure as anyone else who has a notable medical condition. You will need to divulge the condition and face the prospect that some life insurance companies may deem you too great a risk to issue you with a life policy.

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