Yes, some people who have had their life insurance application denied by one company may be able to reapply and qualify for coverage at a later date or apply for coverage immediately with a different company may have different underwriting guidelines that may be more favorable to you.
This is because…
There are a lot of reasons why someone may have their life insurance application denied. And some of these reasons may not be “cause” for all life insurance companies to deny an individual.
For this reason…
We wanted to take a moment and briefly discuss some of the options that an individual may have once they have been denied coverage by one (or multiple) life insurance companies, as well as discuss how one can avoid this from happening in the first place.
Questions that will be addressed in this article will include:
- What does it mean to have a life insurance application denied?
- What options does a person have after their life insurance application denied?
- Do all life insurance companies deny people for the same reasons?
- Are there any “kinds” of life insurance policies that will accept everyone?
- What can I do to find the “best” life insurance policy for me?
So, without further ado, let’s dive right in!
What does it mean to have a life insurance application denied?
If you have had a life insurance application denied in the past, what that means is that the insurance company that you choose to apply with determined that you were too “risky” for them to insure.
Now the real question is…
“Why did they determine that you were too RISKY to insure?”
Was it because of a….
- Pre-existing health condition: If you have a serious or chronic health condition, such as diabetes, cancer, or heart disease, you may be more likely to be denied coverage.
- High-risk occupation: Insurance companies may be more hesitant to offer coverage to people with certain high-risk occupations, such as professional athletes or pilots.
- Risky hobbies: Insurance companies may also consider certain hobbies, such as skydiving or rock climbing, to be risky and may be more hesitant to offer coverage to people who engage in these activities.
- Age: Insurance companies may be more likely to deny coverage to older applicants, as the risk of death increases with age.
- Lifestyle: Insurance companies may also consider factors such as your diet, exercise habits, and whether you smoke or drink alcohol when determining your coverage. If you have unhealthy lifestyle habits, you may be more likely to be denied coverage.
“Who knows?”
But the truth is…
There are literally 100s of reasons why someone might have their life insurance application denied by “certain” life insurance companies. The good news is that not all life insurance companies will use the same rules and regulations when determining who the “will” and “won’t” insure.
So…
Even if you’ve been denied by one or two different life insurance companies, you may still have a chance to qualify for coverage provided you apply for the right “kind” of life insurance policy with the right “company”.
What options does a person have after their life insurance application denied?
If your life insurance application has been denied, there are a few options that you may want to consider:
- Shop around: Different insurance companies have different underwriting standards and may be more or less likely to offer you coverage based on your specific situation. It may be worth contacting multiple insurance companies to see if you can find a policy that meets your needs.
- Work with an insurance broker: An insurance broker can help you shop around for life insurance policies and may be able to find a company that is willing to offer you coverage.
- Improve your health: If you have a health condition that is preventing you from obtaining coverage, you may be able to improve your chances of getting a policy by taking steps to improve your health. This may include making lifestyle changes, such as eating a healthy diet and getting regular exercise, and managing any underlying health conditions through medication and other treatments.
- Consider a guaranteed issue policy: Some insurance companies offer guaranteed issue policies, which do not require a medical exam or any information about your health. These policies may have higher premiums and may have lower benefit limits, but they may be an option if you are unable to obtain coverage through other means.
- Consider purchasing an Accidental Death Policy instead. An accidental death policy is a type of life insurance that provides coverage in the event of death due to an accident.
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- These policies typically pay a benefit to the beneficiary in the event that the policyholder dies as a result of an accidental injury, such as a car accident or a fall.
- Accidental death policies are typically less expensive than traditional life insurance policies, as the risk of death due to an accident is generally lower than the risk of death from other causes.
- Accidental death policies do not provide coverage for death due to natural causes or illness, and the benefit may not be paid if the policyholder’s death is due to suicide or self-inflicted injury.
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Do all life insurance companies deny people for the same reasons?
No, not all life insurance companies are going to choose to deny people for the same reasons. This is why you’ll find that some life insurance companies may have some really “strange” underwriting practices.
For example…
Some life insurance companies won’t insure anyone who:
- Has filed for bankruptcy in the past 2 years,
- Has ever been convicted of a felony,
- Flies their own plane,
- Travels across the southern border into Tijuana, or Juarez Mexico frequently,
- Uses injectable forms of insulin to treat their diabetes,
- Have been diagnosed with type 1 diabetes,
- Has used any type of marijuana product in the past 12 months,
This is why it’s important to be completely honest with your life insurance agent and only work with one who is very familiar with how certain life insurance companies will “underwrite” for certain risk factors.
Are there any “kinds” of life insurance policies that will accept everyone?
Guaranteed Issue Life Insurance Policies are a “type” of life insurance policy that will accept individuals without a medical exam (no medical exam life insurance policy) or health-related questions.
This means that even those who may get denied elsewhere “in theory” ought to be able to qualify for a Guaranteed Issue Life Insurance Policy provided they meet the minimum age requirements, are a US citizen and live in a state where Guaranteed Issue Life Insurance Policies are offered.
The only problem is…
That these “types” of life insurance policies will only provide up to approximately $25,000 in coverage and will contain a Graded Death Benefit, which will limit when your policy will begin providing coverage for NATURAL CAUSES of death (waiting period typically lasts two to three years).
What can I do to find the “best” life insurance policy for me?
The fact that you’re reading this article after having been denied life insurance means that you’re well on your way to finding the “best” life insurance policy for you because at this point, the “best” thing that you can do is get a second opinion.
But it’s important…
To not just stop there, because while a “second opinion” is going to be important, you’re going to want to make sure that you get this “second opinion” from a true life insurance professional that’s going to have access to dozens of different life insurance companies to choose from when trying to find a company that WILL approve your application.
Additionally…
Because you’ve already learned that your life insurance application may be more “challenging,” it’s probably going to be a good idea to avoid any agent working in a “call center” environment simply because these agents tend to have less time to dedicate to more “complicated” files.
The good news is that we here at IBUSA specialize in “high risk” applicants and are always looking to take on a challenge!
So, what are you waiting for? Give us a call today, and let us show you want we can do for you!
