The Shocking Reason You May Be Denied Life Insurance

If you have people in your life who depend on you financially, then it's important to buy a life insurance policy. That way, you can rest assured that your loved ones will be eligible for some sort of lump sum in the event of your untimely passing.

You may be aware that life insurance companies take different factors into account when evaluating life insurance candidates. One factor that's likely to come into play is your age. Another is the state of your health.

If you have a host of health conditions, you may be denied life insurance due to an insurer not wanting to take the risk. Or, at the very least, you could end up stuck with very expensive premiums for coverage.

But there's a less obvious factor that could result in you being denied life insurance. And it's something you may want to work on.

When your driving record is far from stellar

Life insurers don't just look at the results of your medical exam when deciding whether to write you a policy or not. Rather, they look at the big picture, which includes your occupation and hobbies.

If you're employed as a sky-diving instructor, you may not be denied coverage. But you might face much higher premium costs than someone similar to you in age and health, but who works as an accountant or editor.

Meanwhile, when you apply for life insurance, you give the company you're applying with the right to access your driving record, says Archstone Insurance Services, LLC. An unfavorable driving history could make it difficult to secure life insurance.

Let's say you have a driving history that's loaded with speeding tickets. That's considered risky behavior. So a life insurance company could decide not to write you a policy because of that, or otherwise stick you with a very high premium rate. The same might hold true if you have one or more DUIs on your record.

It pays to shape up on the road

Driving recklessly could put your life, as well as the lives of other people out on the road with you, at risk. So for that reason alone, it's worth trying to kick some bad habits, like speeding or weaving in and out of lanes due to being impatient.

Plus, continuing to drive dangerously could hurt you from a financial standpoint. For one thing, it could result in very expensive auto insurance premiums. And it could easily drive up the cost of life insurance. In a more extreme situation, you could end up being denied life and auto insurance by having an unfavorable driving history.

Some changes to your schedule and routine could make it so you're less likely to drive recklessly. For example, leaving a few minutes earlier for work or taking a less busy route could result in better driving -- and fewer tickets. The longer you're able to go without a moving violation on your record, the better it bodes for both auto and life insurance.

Also, do whatever you have to do to avoid a DUI. The fact that services like Uber exist these days makes that so much easier. If you can't afford to pay for a ride home after a night out, when you arrange social plans, stick to locations that are within walking distance of your home. If that's not feasible, invite people to hang out at your home.

You may be surprised to learn that a poor driving record could hurt your chances of getting life insurance. But worse yet, poor driving habits could hurt you. For that reason alone, they're worth breaking.