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Why Some Adults are Denied Life Insurance

Not everyone who applies for life insurance is accepted for coverage. Life insurance companies are not charitable organizations and they will only accept you for coverage if you are deemed a suitable insurance risk which means that the likelihood and magnitude of a payout over the life of the policy is acceptable to them. Your application could be denied based on your health, lifestyle and medical history.

According to the Canadian Life and Health Insurance Association (CLHIA), of the rejected applicants:

  • 20% are declined for heart disorders
  • 6% are declined for diabetes
  • 4% are declined for cancer
  • 50% are declined for other serious health problems
  • 20% are declined for non-medical reasons which may include lifestyle and hobbies such as skydiving or other risk-associated behaviours such as alcohol consumption
  • 0.1% are declined due to dangerous lines of work

The older we get at the time of application the more likely there may be a reason that health, lifestyle or medical history will cause us to be denied life insurance coverage. Therefore it makes perfect sense that the younger the life insurance applicant is, the more likely he/she will be accepted for coverage. Did you know that you can apply for life insurance coverage for your child at 14 days of age? The usual causes for denial of coverage don’t typically apply to babies and of course the premiums are much lower than those of an adult. Regardless of your child’s health in adulthood he/she will have life insurance coverage, and that brings with it tremendous peace of mind. And there are many other benefits of insurance for children as well. Insurance for Children:

  • Ensures that your child will always be eligible for coverage.
  • Is a safe, long term investment – insurance is the only financial product that increases in cost every year as the person ages.
  • Is extremely cost effective – the younger the child is when you purchase their insurance plan, the lower the costs. In fact Insurance for Children can cost as little as one tenth the cost of the same plan for an adult and once the insurance premiums are set they never rise again.
  • The money can be used for education, to buy a house, open a business, as an additional source of income or to help fund retirement.

Contact Insurance for Children today and let’s discuss why every child should have a life insurance policy.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $250 per month

Age Accumulated Cash Value Life Insurance Value
20 $82,568 (Education) $612,728
35 $177,953 (House) $1,115,297
45 $303,299 (Security) $1,115,297
65 $834,276 (Retirement) $1,666,824

Sample illustration is based on a monthly contribution of $8.32 a day/$250 a month for twenty years, starting when the child is less than 1 years old. Cash and life insurance values are based on the current dividend interest rate of 6% from a Canadian life insurance company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

Personalize Your Child Plan™

Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

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*illustrations are reflective of the annual premium amount

Have a question about Child Plan or wish to speak with a Family Advisor?