Typically, when one thinks about 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 or one won’t.
There will be those that may be approved for coverage at a rate “other than” what they were originally quoted, but at the end of the day, these folks will still have to 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 on 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 ensure that I give myself the best “chance” of being able to qualify 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 simply means that as of this exact moment in time, 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 right now, the insurance company can foresee a time in the NEAR future when you MIGHT be able to 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 some type of explanation about why you have had your life insurance application “postpone” and what you can possibly do to be able to qualify for coverage at a later date.
Ironically, at that later date, you may even be able to qualify for a Preferred or Preferred Plus rate 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 around.
Postponed Life Insurance: Top Reasons
There are a lot or 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. Which 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 choose 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 restriction in place,
- Recent bankruptcy,
- Previous criminal history.
Now if your…
Postponement as been caused by some “other” type of reason such as an unusual result on your medical exam; you’ll then want to determine if this unusual result is an indicator of some kind of “undiagnosed” pre-existing medical condition or some type of 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 levels of protein in one’s urine which may be the result of excessive exercise prior to 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 additional medical tests) in order 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…
That for most individuals, simply understanding “why” their life insurance application has been postponed isn’t going to be enough for them to understand whether or not they may have other options available to them.
“What can I do to help ensure that I give myself the best chance of being able to qualify for coverage?”
In our opinion, here at IBUSA, there are two things that one must do to increase their chances of being able to qualify for a traditional term or whole life insurance policy after they have had their life insurance application postponed.
First, you will need to understand exactly “why” your life insurance application has been postponed and understand what it is that 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…
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, there is a very good chance that we may be able to turn your Postponement into an Approval fast!
So, call us today and give us the opportunity to help you out!