What to Do When You’re Denied for Life Insurance

No matter how prepared you are, rejection isn’t easy.
Especially, when it has to do with your financial needs.
Getting denied for life insurance may cause unnecessary stress and worry.
Before you panic, here are some steps and additional options if your life insurance coverage is declined.
Here’s what we'll cover in this post:Quick Article Guide
Gather All The Data
Life insurance companies will evaluate your risk prior to denying your coverage. Depending on your risk level, you will be rated, postponed, or denied. You have the right to review the reasons you were declined life insurance.
If you decide to request the information, life insurance companies will outline the reasoning for your denied status. A denial may be based on your medical history, exam results, driving record, or another cause.
Learning you were denied due to a medical exam may come as a surprise. You may be unaware of your illness or condition before completing the exam. But this is a good time to get the treatment you need and begin to be proactive to improve your health.
Verify The Results
There are times when underwriters may have been provided incorrect information. Once you receive your results, you should double check all the information they received.
If you are denied coverage because of your exam, reach out to your doctor to confirm the results. It’s possible that an insurance company would deny coverage for under-diagnosed lab results, which is not necessarily a justified reason for denial of coverage.
Additional reasons you could be denied include financial distress, a hazardous occupation, or previously being denied. If you are denied for these reasons, there’s a chance that your risk profile hasn’t been updated. Therefore, it’s important that you verify your risk profile is up to date. You don’t want to be denied due to outdated information.
If you were denied for outdated information, you may be able to appeal your case. Before you do so, make sure to have all of the correct documentation and evidence in writing. If the denial was due to medical issues, ask your doctor if they will confirm your health status. The more organized you are, the easier the process will be.
Partner With A Life Insurance Expert
Partnering with a life insurance expert will help you find alternative options. Life insurance experts like JRC Insurance Group have a well-versed knowledge of what insurance companies are looking for. They can help you apply for a policy that will provide you with suitable coverage.
Life insurance companies have different underwriting guidelines for what they are willing to accept. For example, you may be denied by one insurance company for a condition such as Diabetes, but another one may accept you because your condition is controlled by medication.
If you’re looking for alternative options, you may want to explore no exam life insurance, Guaranteed Issue life insurance, or Group life insurance. Here’s what you need to know about each.
No Exam Life Insurance
No exam life insurance policies allow you to apply for life insurance without taking a medical exam. Before, these policies were much more expensive than traditional policies. But with their increasing popularity, no exam policy premiums have become more competitive in the last few years.
Keep in mind, that underwriters may still review your medical history. So, if you have a previous condition, this may not be the best solution.
Guaranteed Issue (GI) Life Insurance
Another option is Guaranteed Issue or GI life insurance. If you are permanently disabled, have serious health issues, have a mental disorder that you are collecting Social Security or SSDI for, or are a high-risk candidate, this may be your best option.
GI life insurance policies are available for anyone between ages 50 and 85. This policy doesn’t require a medical exam, asks few health questions, and may be issued promptly. Policies range in coverage from $5,000 to $25,000.
GI policies have a 2-year waiting period, which essentially means if you pass away within your first two year of coverage, your beneficiary will only receive the amount you paid toward premiums. If you pass away after the waiting period, your beneficiaries will receive the full death benefit amount.
Group Life Insurance
Many organizations offer Group life insurance policies for their employees. You should be entitled to this policy even if you have a pre-existing medical condition. However, policies tend to have a small amount of coverage.
If you choose to leave your job, you will lose your coverage entirely. You should still look for additional options since the amount of coverage may not be enough to take care of your life insurance needs.
Don’t Hide Information
If you decide to wait and apply for coverage in the future, disclose all information. Don’t hide the fact that you were declined coverage with a previous company. Any miscommunication could lead to your insurance agency rescinding your policy in the future.
Allow A Waiting Period
Once you do find a life insurance policy, you may still want to continue shopping for coverage. Depending on your premiums and death benefit, there may be some money-saving options down the road.
For example, if you were declined life insurance due to obesity and you then lose weight, let time pass and reapply for coverage. Once medical records are updated, there’s a chance you could receive a lower rate.
Additionally, if you were declined due to your driving record or criminal action, you may need to wait until the offense is cleared.
The Bottom Line
It’s not the end of the world if your application for life insurance is denied. Don’t panic and seek alternative options to get the life insurance coverage you need.
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople.
Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555,or request a free quoteusing the form below. In less than a minute you can view actual quotes from dozens of highly-rated life insurance providers.

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