Dealing with a Life Insurance Denial: Next Steps

Understanding the Denial

Receiving a life insurance denial can be a daunting experience. It's essential to understand why you were denied. Insurers may deny applications due to health conditions, risky professions, or lifestyle choices. Reviewing the specific reasons cited by the insurer can help you address any misunderstandings or omissions in your application.

Review Your Application

First, review your application carefully. Ensure all information is accurate and up-to-date. Errors or incomplete information can result in a denial. You have the right to inquire about the specific reasons for refusal and request a copy of the report used by the insurer.

Explore Other Insurance Options

If you're denied by one insurer, it doesn't mean you won't find coverage elsewhere. It may be more difficult as insurance companies have outside resources to track other companies' decisions. Different insurers assess risk differently. Consider working with an independent insurance agent who can help you find insurers more likely to offer coverage based on their underwriting standards. We have had cases where applicants were denied coverage with multiple carriers, only to be approved at the best health category by one. It takes knowing what companies like and don't like as a risk factor. 

Improve Your Eligibility

Take steps to improve your eligibility before reapplying. If your denial was due to health issues, addressing these through lifestyle changes or medical treatment can enhance your insurability. Building a healthier lifestyle can also lead to better terms in the future.

Consider Guaranteed Issue or Simplified Issue Policies

For those struggling to obtain traditional life insurance, guaranteed or simplified issue policies might be viable options. These policies often have higher premiums and lower coverage amounts but require no medical exam and have fewer underwriting restrictions.

Seek Professional Advice

Consulting with a financial advisor or insurance professional can provide personalized guidance on how to proceed. They can offer insights into different carriers, policy types, and steps to improve your application strength.

 

Find A Broker That Has Access To Several Companies 

An experienced broker can quickly identify carriers interested in your type of risk.