Typically, when considering applying for a traditional term or whole life insurance policy (vs. a burial life insurance policy), the general expectation will be that one will qualify for the coverage.
There will be those that may be approved for coverage at a rate “other than” what they were initially quoted, but at the end of the day, these folks will still have the option to choose whether or not they want to “Get Insured.”
But what happens in cases where someone may have their application “postponed”?
“What is someone supposed to do in this situation?”
This is why we wanted to take a moment and discuss exactly what it means to have an application “postponed” and discuss some of the options that may be available should you find yourself or a loved one in such a situation.
Questions that will be addressed within this article will include:
- What exactly does it mean to have one’s life insurance application postponed?
- What are some common reasons why someone may have their life insurance application postponed?
- What options may be available to someone who has had their life insurance application postponed?
- What can I do to help give myself the best “chance” of qualifying for coverage?
So, let’s dive right in!
What exactly does it mean to have one’s life insurance application postponed?
Having a life insurance application be “postponed” by a life insurance company means that you represent a “potential risk” that is too HIGH for an insurance company to consider you currently eligible for coverage. The good news is that even though you currently represent too great of a risk, the insurance company can foresee a time in the NEAR future when you MIGHT qualify for coverage, which is why they don’t necessarily want to DENY your application immediately.
It’s also why…
Most “postponement” notifications will include explaining why you have had your life insurance application “postponed” and what you can do to qualify for coverage later. Ironically, you may even qualify for a Preferred or Preferred Plus rate at that later date, depending on the reason for your original Postponement.
For this reason…
We now want to shift gears slightly and discuss some of the most common reasons why someone may have their life insurance application postponed the first time.
Postponed Life Insurance: Top Reasons
There are many reasons why an individual’s life insurance application can be postponed. For example, someone may find that their life insurance application is being postponed because: There was something in their medical exam that an insurance company wants to have further investigated, such as
Other “medical” reasons may include:
- Having a scheduled surgical procedure planned soon or having just recovered from a medical procedure (six months or less),
- Currently in your third trimester (pregnancy) or just recently given birth to a child,
- Recently suffered from a heart attack or stroke,
- Recently been diagnosed with a manageable pre-existing condition but haven’t had enough time to demonstrate that this condition is being well managed.
- Conditions may include:
- High blood pressure,
- High cholesterol,
Additionally, some applicants may find their life insurance application POSTPONED due to some type of “non-medical” condition or factor, such as:
- Driving record,
- Credit history,
- Criminal background,
- Future travel plans,
- Current hobbies.
So, as you can see, there is a wide range of reasons why an individual may find their life insurance application postponed by a particular insurance company. This brings us to our next topic, which is…
“I have been postponed for life insurance; now what?”
The first thing that you’re going to want to determine is whether or not your life insurance application has been “postponed” because you chose to apply with the “wrong” life insurance company or if it has been postponed for a reason that most (if not all) life insurance companies would be nervous about.
Examples that may cause someone to be denied life insurance coverage by “certain” life insurance companies but not all life insurance companies may include:
- Certain travel restrictions are in place,
- Recent bankruptcy,
- Previous criminal history.
Now, if you…
The Postponement has been caused by some “other” reason, such as an unusual result on your medical exam; you’ll then want to determine if this unusual result indicates some “undiagnosed” pre-existing medical condition or some error or anomaly.
Examples of errors and anomalies that can frequently occur include:
- A false-positive test result.
- Unusually high liver enzymes in one’s blood may have been measured improperly.
- High protein levels in one’s urine may result from excessive exercise before your medical exam.
With this information in hand, one can then determine whether or not it may be possible to “re-apply” for coverage with another insurance company so that they don’t have to wait to be approved by the insurance company currently “postponing” their application or jump through any additional “hoops” (such as other medical tests) to have their application approved.
We should note, however…
That even in cases where an error may have occurred with your lab results, it’s always a good idea to let your primary care physician know about the results so that they, as your primary care physician, can rule out any potential issues.
The only problem is for most individuals, simply understanding “why” their life insurance application has been postponed isn’t enough to know whether they may have other options.
“What can I do to help ensure I give myself the best chance of qualifying for coverage?”
In our opinion, here at IBUSA, there are two things that one must do to increase one’s chances of qualifying for a traditional term or whole life insurance policy after one’s life insurance application is postponed.
First, you must understand precisely “why” your life insurance application has been postponed and what you must do to be eligible for coverage from that original carrier.
Next, you may want to consider getting a second opinion about the outcome of your life insurance application.
This way, you can have another independent life insurance agent review your case and see if there isn’t something that they can do by utilizing a different insurance carrier. The good news is that here at IBUSA, we have a lot of experience helping folks who have had their original life insurance application postponed. We also know that by “shopping” the dozens of different insurance companies that we work with, there is a perfect chance that we may be able to turn your Postponement into an Approval fast!
So, call us today and allow us to help you!