I’ve recently read some interesting information about the types of people and groups that are not eligible for life insurance that I’d like to cover with you!
Are there any Groups of People who can’t get Life Insurance?
You may be wondering if you’re within a section of the population that may struggle to find a life insurance provision. It can be difficult for some people to get a plan, and potentially expensive, but there are provisions in place for some groups who find it difficult to get private life insurance.
It’s often said that you can only buy insurance when you don’t need it but that’s not quite true. Buying a policy can be difficult at times but it’s often possible if you go to the right place.
Life insurance if you have a chronic health problem
If you’re suffering from a serious chronic health problem such as cancer it’s not always easy to find someone willing to insure you. As with any insurance, providers want to limit the potential risks involved in providing a policy. It stands to reason that anyone who may have a significantly shorter life expectancy presents a risk they may not want to take.
That doesn’t mean you are totally excluded from getting life insurance if you are suffering from a serious illness. There are certain insurers who specialize in providing policies to people who struggle to find life insurance elsewhere; although premiums can be high.
It’s also quite common for people to go to work for a certain employer in order to be covered by an employer provided group life insurance, such as the Federal Employees’ Group Life Insurance for federal employees.
What about the armed forces?
For obvious reasons it’s not easy to get life insurance if you’re a serving member of the armed forces; it’s a high risk occupation which can also present a high risk to insurance providers if they award a policy.
There is a solution to the problem for those people who want to acquire a plan to provide for their famines should they die. Service members Group Life Insurance is provided specifically for this purpose by the Department of Veterans Affairs. It’s a low cost provision for a group of people who potentially have an increased need for life insurance cover.
If you’re a prisoner what happens?
If you’re going to be incarcerated, or stand a chance of being,you may wonder what happens about life insurance cover. The answer is that there are no regulatory restrictions but insurance providers veer away from providing life insurance plans to those in prison. The main reasons for this are the lack of ability to do any proper health checks and the lack of access that inmates have to their finances.
The situation with regards to those who have a life insurance plan before they are imprisoned is different. They continue to be insured as long as they carry on paying the required premiums. So if you are imprisoned you can keep a policy that you already have but you are not going to be able to get a new policy once you are actually in prison.