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

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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Can life insurance be declined

It’s rare for a life insurance carrier to deny a policy claim. According to the American Council of Life Insurers (ACLI). “ACLI 2020 Life Insurers Fact Book.” Accessed August 27, 2021. at the end of 2019, only 0.02% of those life insurance payouts were reportedly delayed or denied. However, it’s not possible. A life insurance company may deny the death benefit if the policyholder has missed payments on their policy or based on the cause of death, among several other reasons.

If your claim happens to get rejected, the insurer will refund the premiums paid into the policy and cancel it. You can appeal the denial by talking to the provider, but it’s unlikely to change anything unless there’s been a legitimate error.

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:

What medical conditions disqualify you from life insurance

Pre-existing conditions can make it harder and more expensive to get life insurance. Still, even if you have a chronic or terminal health problem, you will likely find a policy you can qualify for if you shop around. The specific policy types you allow depend on your particular medical issues, your condition management, and the insurer.

When applying for life insurance, a pre-existing condition could be any health problem that might affect your longevity, and each insurer qualifies them differently. Due to the added risk, health problems are created for insurers, and some of those pre-existing conditions could raise your cost or even disqualify you from certain types of life insurance policies.

Some examples of pre-existing conditions may include things like high blood pressure, diabetes, cancer, and asthma. Also, previous injuries might be considered pre-existing conditions depending on their severity and any lasting effects.

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 makes you uninsurable for life insurance

Hitting that roadblock when you’re trying to protect your family. Like getting life insurance. I to find out your application has been denied. If this happens, what’s your next move? 

Don’t worry: There are options. Coach B. can walk you through what you can do if your life insurance application gets denied.

Getting that decline letter in the mail from the life insurance company and seeing, “Sorry, but . . . ” is enough to worry anyone—especially if you have a family who relies on your income. However, if this happens, your first call should be to the insurance company to find out why.

Insurance carriers look at your medical and nonmedical risks when navigating your application to determine your eligibility and costs. Their data could show anything from a serious medical condition (like heart disease) or poor results from the medical exam to other reasons like bankruptcy, a criminal record, a positive drug test, MIB hit, or possibly a dangerous hobby.

Once you have the reasons, you need to ensure they have the correct information in the reports they get because no one knows your situation better than you! If the information they have needs to be corrected, now is the time to appeal and fix it.

You have the right to appeal if you were denied based on incorrect or insufficient medical information. The best way to do this is by asking your doctor to provide the insurance company with as much up-to-date information from your medical file as possible.  

You can appeal for nonmedical reasons, too, like an out-of-date financial record, a lapsed driving offense, or incorrect details about your job and hobbies that put you in the high-risk category.

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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What percentage of life insurance claims are denied

Less than 1% of the time. If the policyholder was honest on the application and paid their premiums, there should be no issues. You can appeal directly to the provider, but that’s only a good idea if you have proof of a mistake.

FAQ’s

Can you get life insurance after being denied?

An life insurance application rejection doesn’t mean you can’t get life insurance at all. Each insurance carrier has different underwriting standards, so your age, certain health conditions, or risky hobbies will be treated differently depending on where you apply for life insurance.

What will cause you to be denied life insurance?

Anything from a serious medical condition or poor results from the life insurance medical exam or other nonmedical reasons like a bankruptcy, a criminal record, a positive drug test, or even a dangerous hobby

How do you fight life insurance denial?

  1. Contact the Life Insurance Carrier.
  2. Contact a Life Insurance Lawyer to Appeal the Claim.
  3. Understanding Why the Company Denied Your Claim.

Meet the team

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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