What Happens If I’m Declined For Life Insurance?

Got rejected by your life insurance company? Here is a complete guide explaining the steps tot take after getting rejected.
 life insurance

It’s never pleasant to get turned down for anything, whether it’s a spot at your dream university, a date, or even life insurance. While we cannot assist with the first two instances, we can offer some advice if your life insurance application is denied.

Underwriting is the method used by life insurance agencies to establish rates and client qualifications. As the underwriting standards of different insurance providers vary, being turned down by one provider does not necessarily rule out your chances of securing coverage with another.

On that note, let’s look at what to do if your life insurance application gets denied.

Steps To Take After Being Declined For Life Insurance

Ask For Additional Information

If you belong to a household that depends on your livelihood, receiving a rejection letter from a life insurance company is a source of worry. If something like this occurs to you, you should first get in touch with your life insurance agency. When determining whether or not you are eligible for coverage and premiums, insurance companies consider both the non-medical and medical concerns you face.

They may be concerned about your health, such as a heart ailment or poor outcomes from a medical check for your life insurance. They can also be concerned about things that have nothing to do with your health, such as going bankrupt, a criminal past, a failed drug screening, or even a risky hobby.

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Review Your Case

Once you understand the reasoning, you can verify that they have all the facts correct; after all, you have the inside knowledge regarding your circumstance. You should file an appeal if the information they presented appears out of date or incorrect.

You possess the right to contest your denial if the reason given for the denial is based on false or inadequate medical information. One effective strategy is to request that your doctor send as comprehensive a copy of your most recent medical records as appropriate to your life insurance company.

Non-medical grounds, such as an out-of-date bank statement, a forgotten traffic violation, or erroneous information about your occupation or interests, can also be challenged.

Inquire With Your Workplace

If you’ve been turned down for life insurance and it seems like it’s for real, it’s time to talk to your company. You could be eligible to enroll in a corporate term life insurance policy through your company. It won’t provide you with the recommended 10–12 times your annual income in death benefits, but it will help bridge the gap until you can afford your term life insurance.

There is typically no cost associated with joining a group plan. A “supplement” can be added to improve the dividend, although this will incur additional costs. If you require it and have nowhere else to turn, a supplemental group plan can help you. However, if a company benefits person tries to sell you on any optional add-ons, pass on them.

Workplace life insurance plans can provide coverage without needing a medical assessment, making them a good fallback option. Bear in mind that if you decide to leave your current position, you will no longer be covered by your employer’s insurance.

Wait A While

If you’ve been denied life insurance, playing the waiting game can provide you time to fix the underlying health problems that led to the rejection. If you have to lose weight or reduce your stress levels or bad cholesterol, now is the time to do so.

Maintaining positive lifestyle changes (such as improving your diet, giving up cigarettes, and starting an exercise routine) may greatly impact future applications. Fight the good fight! Alter what you can. The passage of time may also assist in eliminating the non-medical causes of denial, such as allowing those repeated speeding fines to expire. Your application might be accepted after taking a brief break.

Don’t waste the time you have to wait by doing nothing; instead, put that time toward building up an emergency fund. When looking for life insurance, any additional money you can put aside can help ease your mind.

We understand how it could seem like everything is stacked against you right now; however, if you can make even tiny adjustments while you wait, you’ll find yourself in a better position to go forward when the time comes.

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If you or someone you know is looking for a reliable insurance company in Houston after getting rejected, then you should turn to Franklin Life & Annuity. Whether you’re looking for final expense life insurance houston or family life insurance, we offer it all. Contact us to find more details.