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    gloria_m's Avatar
    gloria_m Posts: 1, Reputation: 1
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    #1

    Feb 25, 2008, 07:57 PM
    Life Insurance Application Denial Due to Bankruptcy
    My fiancée has recently applied for life insurance and is not yet discharged from bankruptcy - he just received a letter today and the insurance company has denied him insurance stating the reason as being "bankruptcy". Can a life insurance company deny him insurance because of the bankruptcy and if so, why?
    NAVYDOC's Avatar
    NAVYDOC Posts: 4, Reputation: 1
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    #2

    Feb 25, 2008, 09:56 PM
    Check with the insurance commissioner of your state. :D
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Apr 19, 2008, 05:00 PM
    Yes, all insurance from home owners, car insurance and life are all based on many factors. They run a consumer report on you and anything in that can effect the rate and/or if they will insure you or not. There are other companies that may not use this as a factor, so you can best shop around. IF you tell me thae state I amy be able to recommend a company
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
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    #4

    Apr 20, 2008, 08:37 AM
    Yes, insurance companies can do this if they wish to. If the policy requested was a high dollar amount then the life insurance company will look even harder at the person who wants to be insured. They take in all sorts of info, not just your health issues anymore. They want to be sure that you can actually afford the premium on the policy for one and for two they want to make sure that you are not "overinsuring" yourself and just happen to wind up "dead" one morning and then they must thoroughly investigate your death to make sure that they have to pay out the policy to your beneficiary or it's a fraudulent claim being presented to them. Remember, they are in business to make money - not to be a source of funding for people.
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