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.

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Denied 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.

One 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

Life insurance application denied?

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.

If 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.  These items could be what makes you uninsurable for life insurance:

  • Cancer
  • Denied life insurance because of Diabetes
  • Denied life insurance due to prescription history
  • HIV or AIDS
  • Denied life insurance due to anxiety
  • Denied life insurance due to mental health 
  • Denied life insurance due to depression
  • Asthma
  • Denied life insurance due to weight
  • High cholesterol
  • High blood pressure
  • Heart diseases
  • Sleep apnea
  • Smoking and other nicotine abuse
  • Parkinson’s disease

Lifestyle/Hobbies

Lifestyle is a choice, and if you decide to have a dangerous hobby and a risky lifestyle, it does not mean that you do not have a shot for the best life insurance policy. Therefore, you can get coverage even if you are a smoker, but the premium will be higher. If you are already suffering from a lifestyle disease caused by smoking like lung cancer or emphysema, then you have a higher probability of getting disapproved.

Even if you have higher risks still, you should not lie about the truth about your lifestyle or hobby. If you die due to a lifestyle disease or a dangerous hobby you did not disclose during the application process, the insurer might cancel your policy. As a result, your beneficiaries will not get the death benefit.

Age

There is no point in delaying your life insurance application because the older you get, the expensive it will be to get covered. Also, after a certain age, some traditional life insurance policies are not for you. You still have some good options, but coverage available for you might not suit your needs.

Adults have lesser debts and dependents leaning on them for financial support, so they are less likely to purchase a policy. For people who are 55 years old and above and still have dependents or looking for the best coverage, there are great options for you.

The following are useful steps to increase your chances of getting approval

Life insurance application denied?

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.

If 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, such as:

  • Cancer
  • Denied life insurance because of Diabetes
  • HIV or AIDS
  • Anxiety
  • Denied life insurance due to mental health 
  • Depression
  • Asthma
  • Obesity
  • High cholesterol
  • High blood pressure
  • Heart diseases
  • Sleep apnea
  • Smoking and other nicotine abuse
  • Parkinson’s disease

Lifestyle/Hobbies

Lifestyle is a choice, and if you decide to have a dangerous hobby and a risky lifestyle, it does not mean that you do not have a shot for the best life insurance policy. Therefore, you can get coverage even if you are a smoker, but the premium will be higher. If you are already suffering from a lifestyle disease caused by smoking like lung cancer or emphysema, then you have a higher probability of getting disapproved.

Even if you have higher risks still, you should not lie about the truth about your lifestyle or hobby. If you die due to a lifestyle disease or a dangerous hobby you did not disclose during the application process, the insurer might cancel your policy. As a result, your beneficiaries will not get the death benefit.

Age

There is no point in delaying your life insurance application because the older you get, the expensive it will be to get covered. Also, after a certain age, some traditional life insurance policies are not for you. You still have some good options, but coverage available for you might not suit your needs.

Adults have lesser debts and dependents leaning on them for financial support, so they are less likely to purchase a policy. For people who are 55 years old and above and still have dependents or looking for the best coverage, there are great options for you.

The following are useful steps to increase your chances of getting approval

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The following are useful steps to increase your chances of getting approval

Explore life insurance alternative products

Step 1: Contact an Independent Broker

Furthermore, after a decline, the first thing to do is contact a reliable, independent agent or broker from Coach B. The insurance provider will tell you the reason why your application was declined. Insurers will forward your information to a broker, and then they will send you a letter.

The broker of your choice will analyze your situation and make good recommendations. Independent agents and brokers are well versed in different kinds of situations, so they exactly know what went wrong.

Fortunately, you can use the previous medical exam result to apply for another insurer. It will cut a huge amount of time off your application timeline.

Step 2: Lifestyle Changes

Insurers will not reject you upfront. Instead, they will postpone your application for six or more months. For instance, if you are recently suffering from a health condition and on medication, the insurer will give you time to do the treatment and recover. After several months, they get back to you to know your health status through your attending physician.

If the postponement is due to alcohol or drug abuse, then the situation is more complicated. However, you can still reapply after a year and show proof that you are doing well.

Step 3: Consider other Life Insurance Products

If you are a risky applicant, you may still apply for an alternative life insurance policy. Hence, it is known as no-exam life insurance coverage, but most are available for a lower amount of coverage. Here are your other types of choices.

Simplified-issue life insurance

The good thing about a simplified issue is the fact that you can skip the medical exam. However, it is better not to avoid discussion of your health status because the underwriter will still dig deeper into your health condition.

Moreover, if you have applied before, your information is already available in the Medical Information Bureau or MIB. It is a database where insurers get information to find out why you have been rejected before. Therefore, your previous medical result from the first insurer is visible.

This alternative policy is more expensive than the traditional one. For instance, you will get the same coverage from the traditional term policy, but you will pay a high premium. Also, most insurers only offer not more than $100,000 coverage for simplified-issue.

Guarantee-issue life insurance

It is also known as “guaranteed acceptance,” which skip the underwriting process. Therefore, it means that you also skip the medical examination and no review of medical records. However, you will be interviewed about your current health condition, and any misinterpretation will give you similar consequences.

This life insurance coverage drawback is that it is the most expensive and offers a lower death benefit. The amount usually ranges from $10,000 up to $50,000. However, if you are running out of choices, a guaranteed issue is a good choice for you.

Final Expense life insurance

It is also known as burial insurance, as the policyholder is expected to die very soon. Mostly, it is being offered to people with a terminal illness, so it only covers the funeral expenses. Although it is limited to burial expenses, it can still help your loved ones. Funeral expenses may cost around $8,000 to $10,000. It is the right policy if you can pay for higher premiums.

Step 4: Group Life Insurance

If you have been disapproved for traditional coverage, another option is group life insurance. One of the best ways to get one is to ask your employer. Part of employee benefits is group life insurance. You are entitled to get this benefit from your employer even if you have a serious health condition.

It is employer-provided life insurance. It means that you are getting a smaller part of group coverage. Therefore, you may not receive enough coverage that suits your actual needs. Additionally, if you decide to leave the company, you lose your coverage at the same time.

If you have been rejected, it does not mean that you do not have the chance to get life insurance coverage. First, it is important to know the reason behind the decline by 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.

If you have been denied for good, then an agent may provide you with other types of coverage like the ones mentioned above. The above alternatives are expensive, but you can consider getting coverage from your employer from a group life insurance. If you want to stay away from the hassle and time-consuming process, it is better to talk to a licensed independent agent from Coach B from the start to avoid the risk of getting dump. They can give you the best insurance provider and policy that suits your needs and lifestyle.

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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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