It is important to make plans for the future as a young adult. Whether it’s saving for that first home or rental property, introducing your baby or grandchild into this world, buying a home, or growing your business, having the right life insurance coverage is a key element in protecting what matters most to you.
Now that you know your own life insurance policy is a better option, did you know that policies not offered through your employer last longer, but can sometimes be harder to get? The good news is that, with the right strategy insurance carriers will approve more than they decline.
Here are the top 5 Reasons insurance carriers may decline policy applications:
- Health: A pre-existing health condition is one of the most common reasons for application rejection. The most common ones are obesity, heart disease, and paralysis/wheelchair use. You cannot rely on your employer’s health insurance if a medical condition or accident forces you out of work. The ultimate protection is to apply for your own policy, outside of your employer’s, while you are healthy. You’re the boss now!
- Age and timing: An important factor in insurance applications is age. Your risk profile may alter as you become older, making approval more difficult and costly. While you are young and healthy, lock in a higher approval rate and lower prices. Never depend on your work. They may only love you while you are young!
- Risky Occupations or Hobbies: Engaging in high-risk jobs or activities, such as drug use, multiple DUIs, criminal activity, vaping or skydiving, can increase your risk of injury or death. Insurance carriers may decline your application or offer coverage with exclusions or higher premiums to account for these added risks. Having too much fun can cost you. Lock in your protection before that ultimate experience!
- Financial Instability: Insurance carriers want assurance that you’ll be able to pay your premiums consistently. A history of bankruptcy or a low credit score may raise concerns about your ability to fulfill your policy obligations, leading to a declined application. Lifestyle decisions should be strategic. Your credit score matters. Seek someone who can guide you, like a financial planner.
- Incomplete or inaccurate information: Insurance carriers use a variety of sources to approve applications. Your medical history can be obtained similarly to your credit history. It’s best to be thorough. Using clear explanations helps avoid any misunderstandings or discrepancies that could lead to a declined application. A good agent could help you explain those items that may be a concern.
If you are interested in learning more about coverages, approvals and applications, visit www.welthactionplnners.com and make an appointment. Or call 404-343-8561 to speak with a licensed professional.
Wealth Action Planners is an American financial services company based in Atlanta, Georgia. The company provides Life Insurance products, financial planning & business consulting to Business Owners, Corporate Leaders, Educators, Gen-X’ers, Millennials and Philanthropists. The company is a registered insurance broker in Florida, Georgia, South Carolina and Texas.
