Many reasons exist for why someone could be declined for life insurance, and we are here to help you determine what types of coverage are still available for you. Being declined for life insurance can be demoralizing if you don’t know where to turn next, which is why we have provided this blog as a resource for those with certain conditions. At Waterway Financial Group, we believe we can help most people obtain affordable coverage if you just give us a chance.
The most important thing to remember is because you were declined for coverage with one company doesn’t mean you will be declined by all life insurance companies. This is due to a variety of factors, but many people believe their is an industry standard which the insurance industry issues declines upon and this is not the case. Each company has differing underwriting guidelines so it’s important to work with an experienced independent agent who can help you navigate all your options.
One of the most important rules when applying for life insurance coverage is to be completely open and honest from the very beginning. This includes letting your life insurance agent know of any kind of medical conditions or hobbies which could prohibit you from obtaining life insurance.
This will allow an experienced agent to help you find the appropriate company which will give you the best chance at approval. It is also important to have all relevant information on the application, or the insurance company will end up finding out on their own. In many cases, people who have been declined for life insurance could have been prevented from applying from the very beginning.
If you have already been declined for life insurance, an important step now it to determine why you were declined. This is important when considering your next step. Often times, the life insurance company will not allow your agent to know the reason you were declined due to HIPAA laws. However, they will send you a letter letting you know you were declined and why they came to this conclusion. If you notice you were declined for something which you are not aware of its best to contact your agent or the insurance company. Sometimes mistakes are made, and you could be eligible to be issued a reconsideration. If this is the case be sure to contact the insurance company you were declined from.
The first thing to remember when facing a life insurance decline is to stay calm and continue to think rationally. Many people when they have declined for life insurance will give up on the life insurance industry all together. This is the worst thing you can do, because it leaves you and your beneficiaries uncovered. If you have been declined for life insurance it is due to some fact which the life insurance sees you as being a high risk individual. Whether this is correct, who knows, nobody has a crystal ball to see how long we will all live. If you have been declined for life insurance, in most cases, you probably do need it though.
You can be declined for life insurance for a variety of different reasons. Some of the most common reasons we see for a life insurance decline include:
Being declined for life insurance by one company is not the end of the road for you, it could just be you applied with the wrong company. Each life insurance company operates on a specific set of underwriting guidelines, and at different times will accept different types of risks. For example, we may have someone apply with one company if they have a history of heart attack, and a different company if they have a history of cancer. Each company has what we determine to be sweet spots.
This right here is why it is so important to work with an independent life insurance agent who has access to multiple companies, and the underwriting guidelines of each if you have been declined for life insurance. We can work directly with company underwriters to get a good idea of what risks they will take and the premiums they will charge for each. This gives you a good idea of what to expect, and what budget to be expecting.
If you have been declined for life insurance, and we find traditional life insurance to not be a possibility, we can explore alternative options. Some of these options may include no exam life insurance or guaranteed issue (acceptance) life insurance. These options may be priced slightly higher, but they do have a very high chance of approval as long as you fall within the specific guidelines. We can also do our best to shop these policies to make sure you are obtaining competitive quotes.
Just because you have declined by one life insurance company, does not mean you have declined from the entire life insurance industry. Unfortunately, many people feel they cannot get affordable life insurance after being declined. If you have been declined, and feel some of the information they used for your decline (medical records, criminal history, blood work) is inaccurate you reserve the right to appeal the underwriting decision. Your agent can help you through the appeal process, to try and reverse the decision.
It is worth looking with other companies who may have more relaxed underwriting than the company you originally applied with. Even if you are being declined for a traditionally underwritten policy, you still have the options of a No Medical Exam Life Insurance Policy, or a Guaranteed Issue Life Insurance Policy.