It can be quite frustrating to put in the time and effort to shop and apply for life insurance, only to find out that your application has been denied. If you have been denied life insurance, however, that doesn’t mean it’s impossible to get coverage. Here’s what you can do if your life insurance application has been denied.
Figure Out Why You Were Denied Life Insurance
You could be denied traditional life insurance for a number of reasons, but that doesn’t always mean you can’t find additional types of coverage. Here are some reasons you could potentially be denied life insurance.
If you suffer from a pre-existing condition or chronic illness, there’s a chance a life insurance company will decline your traditional life insurance application. Your chances of being accepted can increase by being able to show that your illness is being treated.
Health Condition Discovered During Your Medical Exam
You’ll typically address any known medical concerns at the beginning of the life insurance application process. The medical exam, which may require a blood or urine test, is an opportunity to further understand your health and identify any risk. If the exam detects an unknown illness or issue, that could potentially be cause for denial.
Poor Driving Record
Speeding tickets, DUIs and other citations may be an indication of risky behavior to the life insurance company. This can imply that you’re a potential risk to cover, leading to an application denial.
If there is any misrepresented information on your application, the insurer may consider you a moral risk and deny your application.
The older you get, the more difficult and expensive it becomes to get insured. Many life insurance policies have a restriction on age, and although your insurance agent should not put you through an application for a policy in which you don’t meet the age requirement, this could be a potential hang up and lead to application denial.
Confirm Your Life Insurance Application Information
You’ll want to make sure your application has the most accurate information. If something looks off or needs to be updated, now is the time to do so. If you find the reason you were denied life insurance was because of insufficient or incorrect medical information, you have the right to contest their denial and provide the most up-to-date information.
Talk to Your Life Insurance Agent
Sometimes the first life insurance company you apply to isn’t always the best fit for you. Your life insurance agent fully comprehends the underwriting process and can help you better understand why you were denied and find a way to work around it.
Consider Other Life Insurance Policy Options for You
If the first type of life insurance you apply for doesn’t end up working out, there are a number of other types of life insurance options you can consider.
Group Life Insurance Through Your Work
Group life insurance is a popular benefit offered by many employers that works similarly to an individual policy. Group life insurance plans are often limited in coverage options but are typically easy to qualify for.
Simplified Issue Life Insurance
Simplified issue life insurance is a good option for seniors and individuals with health problems. Although approval isn’t guaranteed, your coverage will be based on a questionnaire about your health and lifestyle rather than a medical exam.
Guaranteed Issue Life Insurance
If you are between the ages of 45-85, you can’t be turned down for guaranteed issue whole life insurance. This type of life insurance is often a promising option for seniors or individuals with health concerns.
Final Expense Life Insurance
Final expense life insurance—also known as burial insurance—helps cover end-of-life costs, including funeral expenses, credit card debt, medical bills and any other debt you don’t want to pass on to your family. Final expense does not require a medical exam, only a health questionnaire to help determine your coverage plan and premium.
No Medical Exam Life Insurance
No medical exam life insurance policies can be useful for individuals who aren’t interested in taking a medical exam, are concerned about their health or have been turned down for traditional life insurance before.
Focus On What You Can Control
Some reasons for your life insurance application being denied are fixable. From improving your health or waiting for your driving record to improve, there are steps you can take to improve your chances of getting approved for a life insurance policy. It may take time, but it’s possible that you could later be approved for the life insurance coverage you need.
SelectQuote Can Help Navigate Your Life Insurance Options
At SelectQuote, we simplify the life insurance shopping process by comparing coverage and rates from some of the most trusted insurance companies in just minutes. We can answer any questions you have, match you with the life insurance company suited for your lifestyle or health condition, and find opportunities to try and save you money.