Being denied, well, for anything, isn’t easy, but it can be especially difficult if you are denied for life insurance by not allowing you to prepare for your family’s future should the unexpected occur. However, it’s important to remember that your hunt for the right life insurance policy shouldn’t stop after the first “no.” There are several different companies and options to consider.
Being categorized in the “impaired risk market,” meaning there is a health or behavioral note in your background that gives reason to believe you may die prematurely, can make it tough to obtain coverage, but not impossible. If you’ve been denied a life insurance plan, here are three steps to take.
- Do your research. Before a life insurance company denies your application, they will collect a lot of your personal information. Once they’ve compiled an adequate amount of info, they’ll evaluate your risk. If you’re a high-risk customer, you could be rated (given a substandard policy, typically with higher premiums), postponed or denied.
If this happens to you, it’s your right to understand why. Request detailed information regarding your life insurance denial. The company may cite medical history, results from a current exam, driving record or hobbies (EX: skydiving).
- Confirm the information. Errors can happen, so be sure to follow up after you discover why you’re denied. If the insurance company notes bad exam results as the reason for denial, call your physician to confirm the results.
Other reasons for life insurance denial may include your occupation, hobbies or financial situation. Ensure the provider is using the most up to date records to make its decision. If there is further information you can provide, the results may differ.
- Work with an agent. Being denied by the first company you apply to does not mean you can’t obtain life insurance. Sharing detailed information with a life insurance agent can allow them to research different companies and find the best-fit product for you. A skilled agent understands that each insurance company operates on its own set of underwriting guidelines, so the same application that was denied with on may be accepted with another provider.
If the reason for your life insurance denial is too great, you may need to consider a different type of life insurance policy. Opting for a “graded” or guaranteed product may not be your first choice, but these products do make coverage possible for those who may not obtain a policy otherwise. Despite an increase in cost, these solutions offer peace of mind for your family’s financial future.