Reasons some life insurance Companies don't turn down applicants

[Augusta]

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The truth is that insurance companies won’t turn life insurance applicants down because they know that they can still have their way around with the applicants through their different modifications and adjustment which most times suits them more than the applicant.

It’s always important that the insured be sure that he or she understand what an. insurer is actually offering when they make these ad of accepting any one for life insurance

The truth is that those ads are for guaranteed issue policies. This is because this policy don't request for any health history questions so the insurers knows they are taking a very high risk since people with even bad health could buy their policies.

So the insurers will try to balance things out by adjusting and modifying some things . So how do insurer do these modifications.

charging higher premiums
The insurance company will start by
charging higher premiums. Because they know that claims will come sooner because of the high risk people with bad health

limiting the amount of insurance
The insurance will also limit the amount of insurance that the insured can buy so that the converage will be limited as well to avoid high claims

Increase in premium price
Apart from the high premiums one will have to pay which can be almost as much as the insurance. After a few years, with the premium increase you could pay more to the insurance company than it will have to pay to your beneficiary. So this kind of policies may give only the return of the insured premiums if the insured die within the first few years after purchasing the policy.

it is very important tob understand all these before making a purchase.

 

[Learners Quest]

Life insurance companies have a responsibility to ensure that the policies they offer are beneficial to the customers they serve. Because of this, there are certain reasons why life insurance companies don't turn down applicants. Here are some of the most common reasons:

1. Risk Assessment: Life insurance companies assess the risk of an applicant based on their age, gender, occupation, lifestyle, and medical history. If the applicant's risk is deemed to be low, the company may decide that it is in its best interest to accept the application.

2. Financial Stability: Life insurance companies want to make sure that the applicant has the financial means to pay for their policy. They will often look at an applicant's credit score and other financial records to determine their financial stability.

3. Good Health: Life insurance companies want to make sure that their customers are in good health. If an applicant is deemed to be healthy, the company may be more willing to accept their application.

4. Non-Smoker: Life insurance companies often prefer applicants who do not smoke. This is because smokers are at higher risk for life-threatening illnesses and the companies want to mitigate their risk.

5. Beneficial to the Company: Life insurance companies sometimes accept applicants who may not be the most ideal customers if the company believes that it will be beneficial in the long run. This could include a customer who is likely to stay with the company for a long time or is likely to refer others to the company.

Life insurance companies have a responsibility to ensure that their policies are beneficial to the customers they serve. For this reason, they often consider a variety of factors when deciding whether or not to accept an applicant. By assessing the risk, financial stability, health, and other factors, life insurance companies can make sure they are offering beneficial policies to their customers.

 

[Mika]

I don't think the OP knows how the life insurance policy actually runs. Unlike banks that can change their interest rate at any time, the conditions mentioned on your policy remain the same. If the insurance company goes through the policy changes, it will affect only the new insurance policies, the existing policies will be governed by the same rules as stated in the original document. However, sometimes insurance companies find loopholes in their policy. That's when the insured person does not read the terms and conditions properly and fails to understand the important clauses within the policy they have bought