What Happens if My Life Insurance Is Rejected? Nothing can be more frightening than running into roadblocks while trying to protect your family – such as applying for life insurance only to be turned down – then wondering what steps will need to be taken next if this situation arises. What will your response be in such cases?
Do not feel overwhelmed if your life insurance application is rejected; we have plenty of solutions available. Don’t lose hope! There may still be options available.
If Your Life Insurance Is Rejected Follow Below 5 Steps
1) Request More Details
It would be alarming for anyone to receive a life insurance company letter that reads, “Sorry, but…”–especially if their family depends on them financially. Therefore, should this happen to you, your first step should be contacting your agent or firm and asking why this has occurred.
Insurance companies evaluate your application to assess eligibility and pricing based on both medical and nonmedical risks, from major issues (like heart disease) or subpar findings during your life insurance medical exam to nonmedical factors like bankruptcy, criminal records, positive drug tests or risky hobbies.
2) Examine Your Case
Since no one knows more about your circumstances than yourself, once you understand why something happened you can make sure they’re providing accurate facts and make any appeals that might be necessary if any information provided was outdated or false.
You have every right to appeal if the decision was based on inaccurate or insufficient medical data. A great way of doing so would be for your doctor to provide as much current data from your medical file to your insurer as possible.
Non-medical grounds of appeal may include outdated financial history, suspended driving conviction, or falsified information regarding your occupation and interests that places you into the high-risk category.
3) Consult With Your Employer
If it appears that your life insurance application was rejected, don’t hesitate to get in touch with your employer and inquire about joining a group term life plan through them.
While it won’t provide you with the 10-12 times your income coverage that we recommend, it will still provide you with a death benefit until such time as you purchase term life insurance on your own in the future.
Your group plan may not cost anything, although supplementing it to increase payments may cost extra money. If necessary and no other options exist, supplementing may be your only viable choice. If offered additional “riders,” such as these could prove more costly in the long run.
4) Contact An Insurance Agent For Life
Speak with a life insurance expert immediately if you haven’t done so already if you don’t already! Get private life insurance.
Agents offer many advantages for life insurance underwriting procedures.
Agents should be able to quickly recognize any red flags in your application that led to its initial rejection, while keeping in mind that just because one provider denied you doesn’t mean all insurance providers will follow suit and reject your application.
Agents may search throughout a wider market to locate a policy that fits you better than simply searching online alone (and hoping to find one provider who accepts you). Furthermore, agents can provide guidance regarding next steps you should take; in some instances this might mean suggesting waiting several months before applying.
5) Allow Time For Waiting
After being denied life insurance, it may be beneficial to give yourself some time and space to address any health-related concerns that may have come up during your application process. Use this time as an opportunity to try losing weight or decreasing cholesterol/blood pressure levels if necessary.
Be consistent in practicing healthy behaviors (such as eating well, giving up smoking, and engaging in regular physical exercise) can make an immense difference when applied again. Don’t give up! Focus on creating change where possible.
Time may also help with non-medical causes of refusal, such as speeding tickets that have expired. You might just require some space before applying again – your chances could improve just by taking some time out to relax and recharge!
Take the time while waiting to apply for life insurance to build up an emergency fund and increase it – this will give you greater peace of mind while searching.
Even when everything seems against you at present, small adjustments made while waiting can put you in an advantageous position moving forward.
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