Although it may come as a surprise, you can be denied life insurance while shopping for a policy. While this is rare, it does happen and it is important to know why as well as what to do if you are denied life insurance.

Serious Medical Conditions

Life insurance premiums are denied based on the policyholder’s life expectancy and overall health. Some medical conditions may shorten your life expectancy, which increases the risk of an early payout for an insurer. In some cases, depending on the insurer, having a serious medical condition could mean that you’ll either have to pay a high premium on your policy. In some cases, you may also be denied a policy.

However, insurers are not supposed to drop clients who are later diagnosed with serious medical conditions. The only time an insurer may generally cancel an already active life insurance policy is in the case of nonpayment or fraud.

Failing Your Medical Exam

Most insurance providers will require a medical evaluation as part of their application process. Before you can get a policy, you may be expected to participate in a medical exam. Just like with serious medical conditions, a poor result on your medical exam can lead to a life insurance policy being denied.

Positive Drug Test(s)

As part of your medical exam, you may also be expected to take a drug test. While some drugs are more harmful than others, it is the harmful ones that could land you in trouble. Certain drugs result in lower life expectancy and testing positive can mean that you may be denied life insurance.

Hobbies and Habits

Believe it or not, factors aside from your basic health can also influence your ability to get a life insurance policy, such as your hobbies. If you participate in dangerous or “high risk” extracurricular activities, you could pay higher rates for life insurance or even face a denied life insurance policy.

High-risk activities and hobbies may include smoking, skydiving, rock climbing and more.

If you are having trouble finding a life insurance policy for one reason or another, be sure to review the facts about the denials and look for other avenues of coverage. Life insurance may be available through your employer, for example. These life insurance policies do not always offer the recommended rate of coverage, but they do offer a benefit to your loved ones in case you pass away.