What to do If You’ve Been Declined For Life Insurance

If your loved ones will suffer financially when you die, chances are you need a life insurance policy to help support your family after your death.

Having a life insurance policy can help protect your family when they may need it most, but what happens if you are declined for life insurance?

Even though its not common, life insurance companies have been known to deny coverage to certain applicants.

Remember, it’s not the end of the world if you are denied life insurance. There are still ways you can get a life insurance policy.

Here, we offer three steps you can take if you’ve been declined for life insurance.

Find Out Specific Reasons You Were Declined for Life Insurance

The first step is to find out why you were declined for life insurance. Make sure to get this information in writing, as it may be very specific or there might be more than one reason for denial.

There are many reasons people get declined for life insurance such as:

Obesity
Income limitations
Alcoholism
Elevated liver function
Elevated cholesterol, lipids and triglycerides
Blood or protein in the urine
Hazardous occupation such as steel workers or flight engineers
Hazardous extra-curricular activities such as flying or scuba diving
Drug use
Questionable driving record
History of cancer
Previous declines on life insurance applications
AIDS or HIV
Hepatitis
High Levels of glucose or blood sugar

Once you know why you were declined you can determine your next course of action.

You may need to begin some sort of treatment which could make you eligible for life insurance approval at a later time.

You could apply to another life insurance company but you shouldn’t do that until you know exactly why you were denied. This can help avoid a repeat denial.

Obtain Copies of Your Medical Records

Get copies of any medical records used by the life insurance company that declined your application. Check these records carefully to make sure that they do not contain false or outdated information. If you find any errors, you’ll need to correct and update the relevant information as it may appear in a database accessible to most insurance companies.

Work With an Insurance Agent

If you’ve been declined for life insurance, your most important strategy is probably to work with an insurance agent.

There are hundreds of life insurance companies, and each takes a somewhat different view of various health conditions. Where one company may deny you, another may approve your application. For example, some life insurance companies take a more favorable view of smokers than others.

An insurance agent can be a valuable resource in helping you get a life insurance policy. They can help you understand the language in life insurance policies, explain the specific terms and conditions, and guide your decision around which coverage is right for you.

Taking these three steps can help you get a life insurance policy when your application has been declined.

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About Council for Disability Awareness

Council for Disability Awareness has written 478 posts in this blog.

The Council for Disability Awareness is a nonprofit organization dedicated to educating the American public about the risk and consequences of experiencing an income-interrupting illness or injury. The CDA engages in research, communications, and educational activities that provide information and helpful resources to wage earners, employers, financial advisors, consultants, and others who are concerned about the personal and financial impact a disability can have on wage earners and their families.