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I was denied life insurance recently because, as a minor, I had been committed for attempted suicide. That incident occurred a number of years earlier. Can the company after a lapse of so many years use mental health as a reason to deny my application?
Yes, it is perfectly legal for life insurers to refuse to issue an individual policy seeking to insure the life of a person who is a member of a category that has a significantly higher risk of premature death than the average person on whom their rates are based. The fact is that suicide attempts and mental conditions are highly relevant to future life expectancy.
This may not sound "fair" and admittedly many insurance companies are backwards when it comes to understanding mental health and modern treatments. But the fear is that if a person goes off the medications, or faces future stress, the condition that lead to a suicide attempt may recur.
Not every insurer follows the same underwriting rules, and some may issue a highly rated policy (rated policies are much more expensive -- like the kind someone with diabetes or 100 pounds overweight may buy) or issue a whole life policy but not a term policy. And if you have a job, most GROUP policies sponsored by employers provide coverage for all employees, and many allow you to buy multiples of salary. |
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Are there any limitations on what an insurance company can charge for insurance?
Can an insurance company cancel my policy for any reason it chooses?
Can I cancel my policy at any time and will there be a penalty?
What is an ‘insurable interest’?
What am I required to do when I have a claim?
What factors are considered in individual life insurance underwriting?
Is a physical exam needed?
What is group life insurance?
Can I buy a policy on someone else's life? What is an ‘insurable interest’?
Can I name any beneficiary I choose?
What happens if the insured person dies?
Do I need a lawyer to help me file a death claim?
Can a life insurance company deny a claim on a valid policy if the insured dies?
What are ‘exclusions’ and ‘limitations’ and how do they affect my life insurance coverage?
Why are life insurance companies regulated by the government?
Can an insurance company refuse to sell me insurance for any reason it chooses?
Life insurance seems complicated -- what are the basics?
What is a life insurance policy?
What problems might we run into when filing a death claim?
What if the insured lied about a heart attack?
What if the insured lied about his age?
What if the insured lied about his smoking?
Who regulates them?
What is individual life insurance?
If I miss a premium payment and get a cancellation notice, is there anything I can do to be able to keep the policy?
If I think certain words in my policy mean something different from what my insurance company says they mean, how do we resolve it?
I am pretty sure that my deceased grandmother had a life insurance policy, but I have no paperwork or other record. Is there a way that I can find out?
Should a minor child be named as a beneficiairy of life insurance proceeds?
I have a large term-life policy in which my sister and brother-in-law are sole beneficiaries. On my behalf, they are paying the annual premium. Are there any tax consequences if they remain (1) beneficiaries or (2) joint owners of the policy? Is it necessary to inform the insurance company that my beneficiaries are paying the premium?
I was denied life insurance recently because, as a minor, I had been committed for attempted suicide. That incident occurred a number of years earlier. Can the company after a lapse of so many years use mental health as a reason to deny my application?
Life insurance companies do a process called ‘underwriting’. What does that entail?
My mom is applying for a life insurance policy for my father who, up until now, has been the picture of health. A recent medical examination however showed an inoperable growth, which may be cancerous. What happens if my mom lies on the medical questions?
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