Declined Life Insurance

What to do After Being Declined Life Insurance?

Life insurance is an important investment that protects your family and provides you with peace of mind. The benefit payment that arrives after your death will help your family when they need it the most.

However, not everyone will be approved for life insurance. The good news is that there are steps you can take if you are declined life insurance.

Work with a Different Company

Different companies will have different underwriting requirements, so you can be denied coverage with one company and approved with another. Being turned down with one company should not deter you from applying with another. Agents can help you find a company that will insure you despite medical conditions, advanced age or other concerns.

Choose a Graded Policy

With a graded death benefit policy, the policy has a waiting period of two to three years. If you pass away during this time due to a non-accident, the company will refund your premiums plus interest. If your death is a result of an accident, the full face amount of coverage will be paid. After the waiting period expires, you will enjoy full coverage starting year 3 or 4 depending on the policy. These policies are more expensive, so they aren’t for everyone. However, they are the right choice for people with medical conditions who are having difficulty being approved for a traditional policy.

Guaranteed Issue Insurance

When you are declined for life insurance, try a different plan. Guaranteed issue policies only require that you are a US citizen and currently have an address within the country. They are guaranteed, so you cannot be turned down. However, they also come with some of the highest premiums in the industry. However, if you are declined life insurance for other policies, this is a viable option.

Improve Health Problems

Insurance companies don’t like seeing people with health problems. They want to know that you are healthy and have any health issues under control. If you previously applied and your high blood pressure resulted in a denial, then you should reapply after getting your blood pressure under control. You will need to schedule a health appointment so the insurance company can confirm that your blood pressure is controlled through medication and diet. Even if you were declined for life insurance previously, you can still obtain coverage by getting these medical problems under control

When you are declined life insurance, don’t assume that you are uninsurable.

A different company may be happy to insure you. You can also invest in policies that are specifically designed for people with health conditions or senior citizens. These plans are more expensive, but they can provide you with the coverage you need. Finally, take the time to meet with your doctor and improve your health conditions. When you reapply, you may get a different answer. With so many options for obtaining life insurance, there is no reason to give up if you have been declined.