Life insurance, also commonly referred to as final expense insurance, is a contract between a policy holder and an insurance firm. In this case, the individual makes regular payments to the company; these are known as premiums. In exchange, the firm has a right to pay a designated amount of money in the event of the insured's demise. Depending on the rules and principles of the contract, other factors such as chronic conditions can also trigger payment. The life cover guarantees your family financial security, should it be that you are no longer in a position to care for them. Unfortunately, insurance firms tend to deny particular people life insurance. Here are some of the reasons that may result in such a claim denial.

 

Income Constraints

 

The aspect of having limited salary raises a red flag for plenty of life insurance providers. Most of the life insurance companies require that you earn an income that does not go below a particular level. The minimum income level will vary from one firm to another. The insurance providers impose this restriction to avoid issuing too many small policies that can only lead to reduced premium flows. View http://www.mahalo.com/how-to-save-money-on-a-life-insurance-policy/ for tips on how to save money on life insurance.

 

Material Misrepresentation

 

If a particular policyholder passes on, in the first two years from the date of his life insurance application, the insurer has a right to contest the policy. Contestability is where the insurance company examines the policy holder's background information. When one is applying for this type of insurance, he is asked to provide an array of details including income, hobbies, criminal history among others. If, in the course of contestability, the firm discovers that the insured gave any false information concerning his assets, the policy claim is likely to be denied. In such a turn of events, it is advisable for the family to hire a life insurance lawyer to ask for his reimbursement.

 

Hazardous Occupations

 

Some types of jobs pose higher risks than others. This causes insurance companies to be reluctant in providing coverage for people in such occupations. Some of these hazardous jobs include airline pilots, flight engineers, roofers, electrical power-line installers, truck drivers and construction laborers. If you have devoted your life to any of the mentioned careers, do not be surprised if your life insurance policy application is rejected.

 

Medical History

 

The minute you decide to apply for life insurance coverage, you give the insurer liberty to look into your medical background. If you have been treated for any chronic or life-threatening illnesses like AIDS or cancer, you may be denied the coverage instantly. The insurance provider will also often inquire about your parents' medical history. If they died at a young age, this makes you prone to a life insurance claim denial.