As a life insurance professional, my job is to think about planning for death more than a normal person should. Doing so often makes me wonder what would happen if I didn’t make it home one night. Fortunately, I’m in good health and do have a term life insurance policy that will financially protect my family. But how can people who aren’t healthy or cannot qualify for a policy protect their families? If this sounds like you, an Accidental Death Insurance policy may be the answer you’re seeking.
We can’t know when accidents are going to happen, only that they inevitably will. In 2017, injuries accounted for over 169,000 deaths and were the third leading cause of death in the U.S. Poisoning, motor vehicle accidents and falls accounted for over 82% of all accidental deaths, according to data from the Centers for Disease Control and Prevention (CDC).
A term life insurance policy will cover you for death due to an accident of any kind, as well as death due to natural causes. But you need to be in good health and be a reasonable risk to qualify for a term life policy, or at least to get an affordable rate. Sadly, not everyone will be eligible for one.
Reasons You May Not Qualify for Term Life Insurance
Life insurance companies develop their underwriting guidelines to determine an applicant’s eligibility for coverage as well as the rate the policy owner will pay for the policy. There are dozens of reasons people do not qualify for term life insurance. Here are some of the more common ones.
You have significant medical conditions or history that prevents you from qualifying for life insurance. Conditions we commonly see that exclude people from coverage or cause the rates to be unreasonably high include:
- Heart Disease
- Stroke / TIA
- Excessive Weight
- Bipolar Disorder / Major Depression
- Diabetes (uncontrolled)
- Kidney / Liver Disease
Activities such as scuba diving, rock climbing, sky diving, and auto racing are usually considered dangerous by life insurance companies. To mitigate their risk in providing you with a life insurance policy, they often charge higher rates and extra premiums. These charges can add hundreds or even thousands of dollars per year to the cost of a life insurance policy. And involvement in hazardous activities might cause an insurance company to decline you outright.
Poor Driving Record
Life insurance companies will charge a higher cost to applicants with a history of driving under the influence of alcohol or drugs, typically within the past five years. And if you have multiple DUI/DWI felony convictions, you likely will not qualify for coverage at all.
Multiple accidents or moving violations such as reckless driving or speeding will also result in higher rates. If you’ve had your driver’s license suspended or revoked you likely will not qualify for coverage until it has been reinstated.
Avocation / Job / Disability
Life insurance companies may decline you for coverage if you have specific jobs such as fisherman, miners, loggers, and high-rise construction workers.
If you are not working at all due to a disability, you likely will not qualify for coverage, depending on the circumstances.
Military / Foreign Travel
Military personnel deployed to areas of conflict also may not be able to qualify for coverage. And if you have travel plans to dangerous places or countries on the U.S. State Department’s Travel Advisories list, you may not be eligible for coverage until after your travels.
What if You Cannot Qualify?
If you cannot insure yourself against death due to natural causes, at the very least, you need to protect yourself from dying due to an accident. Some protection is better than no protection.
And that’s precisely what an Accidental Death Insurance policy is designed to do.
Accidental Death insurance is straightforward to apply for and is guaranteed coverage; meaning, you cannot be turned down. Also, there are no health questions to answer and no medical exams to complete. Here are more reasons Accidental Death is such a good value.
- You can buy coverage up to $500,000.
- You can buy coverage up to age 70 and keep it until age 80.
- It provides coverage for death sustained from an accident, even work-related accidents.
- The policy pays an additional amount above the policy benefit if you die while driving or riding in a car, or as a passenger on a common carrier such as a bus or plane.
- You can add a spouse and dependents to the policy.
Remember, fatal accidents happen about every 15 minutes in the US, according to the Fatality Analysis Reporting System. Additionally, your lifetime odds of dying from any unintentional cause are about 1 in 31, as stated in The National Safety Council’s publication Injury Facts.
If you don’t have a life insurance policy or cannot qualify for one, take action now to protect your loved ones. An Accidental Death Insurance policy is affordable, and coverage is guaranteed.