Debt Consolidation Forums Bankruptcy Chapter 7 and Chapter 13 forums

Can someone be denied life insurance limit increase due to bankruptcy?

member profile picture
Posts: 1
Credits: 20
[Donate]

My present husband filed for bankruptcy about 7 years back and got discharge from debts 6 years back. Since then, he has been managing his finances quite well. His health results are fine. However, he has been declined to increase the limit on his life insurance policy, the reason being that the bankruptcy has not yet been discharged. Will he not be able to increase the limit?




Hi Alice,
First of all, you check whether or not the bankruptcy is updated correctly in your credit reports from all the 3 major credit bureaus; dispute them if not.
When you apply for a life insurance policy, there's a checkbox asking whether or not you've been declined life insurance for any reason; and, you've to answer correctly with a "yes" and it might become little difficult as your application will go to a "further review" pile. However, the life insurance companies do approve such applications but you might have to pay a little higher premium rate than usual.

Sub: #1 posted on Thu, 06/16/2016 - 17:15

Good Nelly Good Nelly
Industry Expert
(Posts: 2568 | Credits: 522.86)

I totally agree with Good Nelly. But there are certain debts, which don’t get discharged in bankruptcy such as alimony and child support, student loans, fines and penalties for violating the law, debts not listed on the bankruptcy petition and so on. You must find out whether or not your husband is denied a life insurance limit increase due to these reasons. If so, then do consult an expert.

Sub: #2 posted on Tue, 06/21/2016 - 16:53

Phil Bradford Phil Bradford

(Posts: 110 | Credits: 11.39)

Attachment
More information
  • Files must be less than 1.25 GB.
  • Allowed file types: txt pdf jpg jpeg png.
Post as a guest
CAPTCHA
This question (Case Insensitive) is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Post as a member

Share post

Page loaded in 0.920 seconds.