Is it possible that the renowned NFL quarterback Tim Tebow could be declined for life insurance?
You might be thinking – “How is that possible?”
Why on earth would any life insurance company refuse Tim Tebow a life insurance policy?
3 Reasons Tim Tebow Might Get Declined for Life Insurance
Decline? Here’s How Life Insurance Companies Evaluate
Three of the primary reasons life insurance companies will use to decline a person because they don’t qualify for approval on a life insurance.
Let’s take a look at these criteria in more detail and see how they might apply to Tim Tebow:
If you’re not working then you are not generating any income except what you might be receiving for unemployment, disability, or you may have no income of any kind.
Any life insurance policy is a relatively long term commitment such as whether you’re looking for a 10 or 20 term life insurance policy, or lifetime commitment if you’re looking to buy a Permanent Life insurance policy such as Whole Life or Universal Life.
When the underwriter is evaluating your situation, they are taking a financial risk to insure you.
Here, I don’t just mean the coverage terms of the policy itself, but your financial ability to pay for a policy.
Every life insurance company is incurring expenses when they consider an application.
These expenses include the cost of the medical exam, costs for additional medical reports from other medical sources and practitioners. And, finally there are the administrative expenses of processing the life insurance application.
Before a life insurance company will issue a policy, they would naturally want to ensure your ongoing ability to pay for a policy. It would make no sense to issue you a policy just to have you cancel it or let it lapse because of non-payment.
Would this apply to Tim Tebow?
Well, technically he is unemployed because he is still an unsigned free agent and is not generating an income.
Of course there might endorsements, appearances, or the talk circuit. So, he does not appear to be employed at the moment, at least in the area of his chosen occupation as NFL quarterback.
However, even though you are currently unemployed, this does not necessarily mean you will automatically be declined.
The situation could be you have just been temporarily laid off such as a slowdown due to a strike, or you might be a high income seasonal worker who is not working because the season is finished.
You also might be currently unemployed but the economic outlook looks very positive and given your education, occupation and experience you have good prospects of being employed in the future. This would probably be the loophole that would allow Tim Tebow to qualify for life insurance, even though he is not currently employed by an NFL team.
In all of the above situations, there is a good possibility that some company might pick you up.
Don’t be discouraged if you get turned down by a current insurer because of your employment situation, talk to an independent agent like me as I might find a more liberal company that can help you.
The next issue Tebow could face is he’s not married and has no children. This could cause a problem of “insurable interest.”
Who would he leave the money to?
Financial loss could include debts that you incurred such as your mortgage, personal or business debts, business interests if you are self employed or in a partnership, or if you have dependents who are financially dependent on you.
If you have no insurable interest, this does not mean you won’t get a policy because everyone would at least like to have their funeral expenses paid which is an insurable interest in itself.
So, if you have no insurable interest you might not get approved for a $1,000,000 policy but you might get approved for a $10,000 or $20,000 policy depending on the company and your particular needs.
The point of life insurance is to make certain someone does not needlessly or excessively profit from a policy. It’s perfectly fine to get a slightly higher policy than you need to leave a small financial legacy to a family member.
The purpose of life insurance is to cover your needs for any financial loss you might impose on your family as they will no longer have your income to depend upon.
Would this apply to Tim Tebow?
Well, Tim Tebow is single and does not have any dependents, so it appears he does have anyone to leave his money. Also, I assume from the money he has earned, he likely has no debts.
According to data, his current net worth is around $6,000,000 which means he could make a case obtaining life insurance for estate planning reasons (i.e. estate tax bill, estate liquidity, leaving money to his favorite charity), but otherwise it would appear that he technically has no insurable interest.
There are quite a few life insurance companies that may refuse you a policy if you are employed in an occupation which is considered a “high risk occupation.”
What constitutes a high risk occupation entails the number of fatalities garnered per profession by the U.S. Department of Statistics.
The most dangerous high risk occupations are listed as:
- Offshore oil rig workers
- Offshore commercial fishermen
- Underground miners
- Police officers
- Agricultural and forestry workers
- Certain construction workers
- Certain dangerous hobbies
This not a complete list and is no particular order. The point is that some insurance companies may decline you altogether because they simply don’t want to assume the risk.
But, please do not think that anyone in these professions can’t get life insurance. You may have to simply find either a more liberal company or one that specializes in people who have high risk occupations.
Everyone’s employment situation is different.
For example, you might be a police officer but perhaps you are working strictly in an administrative capacity. The level of risk between someone who is an administrator or front line swat team police officer is very different.
Could Tim Tebow as an NFL football player be turned down because of a hazardous occupation?
A professional NFL football might be considered a high risk occupation.
The National Center for Catastrophic Sports Injuries conducted a study in 2006 that revealed between 1931 and 2006 there were 1,006 direct deaths and 683 indirect deaths attributable to all organized football.
Additionally there are numerous other serious injuries attributable to playing pro ball such as brain and cervical related injuries, cardiac and pulmonary contusions, abdominal injuries, orthopedic injuries along with neuro-degenerative disease, and we all know about the NFL’s settlement with its retired players for football’s effect on the brain.
So, yes it is technically possible that Tim Tebow could be considered as engaged in a high risk occupation (by some insurance carriers) if he ever gets called up to play again, but it would probably not be an issue with most companies.
The truth is that Tim Tebow would almost be practically assured of getting life insurance if he applied.
However, the same might not be true for some you in one or more of the above 3 situations.
The point you have to remember is that everyone’s circumstances are different just as every life insurance company is different. If you get declined or are assessed a policy which you find unaffordable, don’t be discouraged.
Talk to an independent like me because I have access to dozens of insurance companies and would need to obtain more information in detail to provide you with options.
If you have dangerous employment or are unemployed or have specialized life insurance needs we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 888-603-2876.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.