Denied life insurance- Now What?

Every insurer’s underwriting guidelines are different, so if you get declined for life insurance by one company, you may have more luck with another one.


denied life insurance

Who is not eligible for life insurance

Every insurer has its guidelines when it comes to approving policies. If you have been declined by one insurer, then you can still find luck with other insurers.

Rejection is never easy to accept, whether it is education, work-related, or insurance application. In case you have experienced rejection from one insurer, there is still hope. We have the right answers to get you approved in no time and get the coverage you need to secure your family.

All insurance providers use the underwriting process to determine how much a client should pay for insurance premiums. Aside from that, the process will determine if you are eligible for life insurance or not. The guidelines used by insurers may differ, so if you get rejected by one, don’t fret, you have higher chances of getting approved by other insurers.

who is not eligible for life insuranceOne of the most frequent causes of rejection is the current health conditions of a person. Hence, it is the information that you need to disclose before the underwriting process. It will, later on, be discovered in your medical result, so you should not try to cover it up. The truth is that people with a pre-existing medical condition may get high premiums for their insurance coverage. Most insurers offer a guaranteed issue policy, or you may choose to accept a lower amount of death benefit.

If you have been denied your application, then the following are steps and possible options to remember. These steps are not only applicable for first-time rejection. Those who experienced more than one rejection are still capable of getting approved.

Important Takeaways

  • Each insurer has their own unique guidelines, so one or two rejections does not mean that you will not have the chance to get an approval
  • There are alternatives for you if you don’t qualify for a traditional life insurance policy
  • Getting the service of a licensed independent agent is one way to know the best options after a rejected application
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Why would you be declined for life insurance

Several factors can affect the result of the underwriting process. Insurance providers want to know your level of risk, so they will try to dig deeper into your hobbies, family health history, and current health condition. Therefore, it is of utmost importance for you to be honest during the application process. It is even if you have a risky hobby or existing health issues.

If you failed to disclose important information, such as smoking, drinking, drug abuse, risky hobbies, and family history of an illness like cancer, then the insurer can decline your application. Later, after the underwriting process, you may either face disapproval or a higher premium offer.

Moreover, not all insurance providers are created equally. Hence, each insurer might see a risk factor from a different perspective. For instance, company A may deny your application because of diabetes, while company B may accept your application.

why would you be declined for life insuranceIf you are having doubts about applying for life insurance because of possible risk, Coach B agents can help you go over your options. Our licensed agents do comparison quotes and policies without any bias. They will recommend the best insurer according to your level of risk factor.

The following are risk factors that almost all insurance providers use to find out your insurability status. 

Chronic Diseases

There is a higher chance of getting disapproval if you are suffering from a chronic disease by the time of your application. However, you can still get an acceptance if you can prove that your condition is treatable or manageable. It is very important to show an attending physician’s statement or APS. This document will prove that your current health condition is manageable.

Hence, this document is vital during the underwriting process. For instance, if you have asthma, you should show that you are using a maintenance inhaler and getting long-term care from a specialist. It is vital to know important points when your medical concern will be uncovered. 

First is at the beginning of the application, either through an online application or a phone conversation. Afterward, you will be scheduled for a medical examination, which is paid for by the insurer.

The medical exam includes a blood test and urine tests that can determine other illnesses and drug abuse. The last step is the underwriting process. It is when the underwriter will carefully examine the medical result, medical records, and APS.

Each insurer is indeed different, but there are common health issues that may cause disapproval or high final premium.  Some are listed below:

5 Reasons why you can get declined or denied life insurance:

  1. Denied life insurance due to depression

  2. Denied life insurance because of diabetes

  3. Denied life insurance because of anxiety

  4. Denied life insurance due to prescription history

  5. Denied life insurance due to depression


What happens if you get denied for life insurance?

If you have been rejected, or denied life insurance it does not mean that you do not have the chance to get life insurance coverage. First, it is important to know the reason why you were denied life insurance before talking to an independent agent from Coach B. It is good to quit bad lifestyle habits and stop risky hobbies. You are required to do it for a longer period for the insurer to consider a re-evaluation.

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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