Nothing is worse than getting denied when you are doing the right thing to protect your family financially. Purchasing life insurance is a way to keep your family protected if you pass away. Sometimes, it’s quite painful to discover your life insurance application has been denied, but as long as you know what to do when you’re denied life insurance, you can easily get over it.
When you’re denied life insurance, the first thing you should do is contact the life insurance company for more information on why your life insurance was denied. Life insurance companies look into your medical history and non-medical risks when reviewing your application to determine the level of risk you pose. The result of their assessment determines whether or not you’d be approved or denied for life insurance.
Steps to Take After You’re Denied Life Insurance
Irrespective of the reason your life insurance got denied, there are several steps you can take. While engaging in several risks, such as risky hobbies and actions like risky jobs, DUIs, or speeding tickets, and hobbies like skydiving, are some of the reasons you may be denied life insurance. However, being denied life insurance does not mark off your chances of getting approved again. The following are some steps to take if you’re denied life insurance:
Contact the Life Insurance Company or Agent
After receiving the denial letter, the first thing to do is to contact your life insurance company or agent. Doing this helps you get insights into why you were denied life insurance and if there was a mistake on your application. Life insurance companies most times reject insurance applications if anything or risks like age that can take your life sooner are discovered.
Confirm Your Denial
If your reason for denial is stated to be due to poor health, you need to visit your physician to determine whether or not there is a reason for concern. In cases where health isn’t the reason for your life insurance denial, ensure you review the letter properly to be sure the reason stated is valid.
Consider Appealing the Denial
In cases where you’re denied life insurance due to insufficient information, you have the right to appeal the denial. By submitting complete and updated information, you stand a better chance of winning your appeal. If it’s health-related, get updated information on your medical history and provide it along with your appeal.
How to Get Coverage After You’re Denied Life Insurance
As previously stated despite being denied life insurance, you can still get life insurance by following the right steps. These steps include:
Consult a Financial Professional
Most people get denied life insurance because they always try to get insurance coverage themselves. A financial professional who works with more than one insurance company can help you apply to the life insurance companies with the best offer and also offer better chances of approval. A professional can help you with the insurance application and appeal process in cases where you’ve been denied life insurance. Some financial professionals specialize in offering help to higher-risk persons to get life insurance.
Apply Again, But With A Different Insurer or Agent
While every insurer has different life insurance approval requirements, applying for life insurance with a different insurance company or agent may get you qualified. Trying to apply to multiple life insurance companies can help you get the best deal.
Consider workplace life insurance
You may get life insurance coverage from your employer’s group life insurance. You may not get coverage up to your preferred limit, but it is better than not having coverage at all. However, most group life insurance coverage does not require a medical exam to be approved.
Try Again Later
Using a waiting period, get all your health conditions under control, clear any implications or penalties on your driving record, stop smoking and grow your finances. Any insurer who sees these improvements is likely to offer you life insurance.
Consider Applying For a Different Life Insurance
A small amount of life insurance is better than none. Considering applying for a different life insurance can increase your chances of approval. The following are some life insurance policies you can apply for if you have exceeded your options.
Simplified Issue Life Insurance
You can easily take a quick online application for life insurance if you choose this option. Although you would have to answer health-related questions, there’s no medical exam required for this insurance. Simplified issue life insurance has a high approval rate, and you can get spontaneous coverage. However, the disadvantage of this insurance is that it has low coverage limits and high costs.
Guaranteed Life Insurance
Both the medical exam and health questions can be skipped with this life insurance. This insurance has guaranteed approval for anyone who applies. However, there is a waiting period before the overall claim payout would be paid out to your beneficiaries in the event you pass away; this waiting period can last several years. Guaranteed Life Insurance only offers limited coverage options and high coverage costs.
Irrespective of where you stand in the life insurance process, consulting a financial professional is important. They can help you through the entire process, ensuring you get approved for life insurance.
