2024 Guide on Declined Life Insurance and How To Be Approved
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you have recently been declined life insurance for your health, this blog post is for you! We’ll show you the top reasons why life insurers may decline an application and how to get covered.
Ready? Let’s go!
We’re all trying to save money these days so it might be tempting when a company offers a low-cost plan that seems too good to be true. But what does it mean if they say no? A recent study by LIMRA found that one in four consumers who apply for individual coverage are turned down by their insurer.
The top three reasons given were: pre-existing conditions, age or gender of the applicant, and family medical history. Don’t let yourself become discouraged though; there are ways around the rejection letter.
What If I Was Declined Life Insurance
If your declined life insurance, you may be feeling confused, frustrated, and hopeless. However, don’t get too down. Just because a declined life insurance policy does not mean that you won’t be able to get covered. It also doesn’t mean that you’ll need to go with a no-exam life insurance policy, either.
The following will help you get accepted for life insurance and help you understand why you declined. Don’t give up on getting cheap life insurance; there are many things that you can still do to make this happen.
Why would you be declined for life insurance
The reason for your declination is the first thing that needs to be figured out. If you find out you were declined for your pre-existing medical condition, or for something like a DUI, then you’ll be far more likely to be accepted the next time around.
This is because once you’ve pinpointed the issue, you can research life insurance companies that tend to be more lenient towards people in that specific high risk category.
Here Are The Top Reasons Why Life Insurance Gets Declined
When applying for life insurance you must be certain that past history won’t prevent you from getting coverage. It is discouraging when applying and being declined. However, even if a decline happens, don’t lose hope. An experienced independent agent like the agents at PinnacleQuote will guide you to the right carrier.
Overweight or Obese
These are a red flag for life insurance companies since they are conditions which often lead to severe health complications, particularly cardiovascular issues.
While being overweight or obese may not necessarily be an explanation for a decrease in and of itself, it will often result in higher premiums. And whether or not it exists in combination with other health risks, a decrease is highly likely.
Income Limitations
Some life insurance companies will not write a life insurance policy for someone whose income is below a certain level. That level will vary between insurance firms. The reason that they impose this limitation is they don’t need to cover people below a certain income level.
For instance, it could lead to devoting a large number of little policies which produce reduced premium flows. The companies see this as a process of cost containment.
If you want a million dollar life insurance policy but have no assets and make $20,000 a year. There is a great chance that you won’t receive coverage.
Elevated Cholesterol, Lipids, Triglycerides, and High Blood Pressure.
The principal concern here is not necessarily high cholesterol, but instead the mix of elevated LDL cholesterol, and low HDL cholesterol. The combination puts you at higher risk for cardiovascular disease and stroke.
If you have untreated high blood pressure with a history of elevated readings, life insurance carriers would like to see it more under control before giving you a policy.
An elevated liver function
may indicate inflammation or damage to the liver cells. This may cause the cells to leak above normal levels of certain chemicals into the blood.
Most typically, the altitude is light, and the problem is temporary. But occasionally it can be a sign of more serious liver complications, and that’s what worries life insurance companies.
One of the issues for an applicant is that they may become aware of the elevated liver functioning just after having a life insurance medical exam. In that case, there’s no way to know if the status is temporary or something more serious as you have not had the chance to find follow-up medical attention.
The life insurance provider nevertheless could presume the worst and most deny your application.
Health Impairments That Will Cause a Decline
These are some of the most common health impairments that will cause a decline.
History of Cancer
Even though cancer results have been improving dramatically recently, life insurance companies continue to see cancer as a high threat situation. Much depends on the form of cancer which you had, just how far it progressed, and how long remission has been.
The more severe forms, for example, breast cancer, may receive further scrutiny.
Elevated Levels of Glucose or Blood Sugar
High levels of glucose or blood glucose may be an indication of diabetes, and that opens up the chance to get a host of other medical outcomes that lots of life insurance businesses prefer to avoid.
That is another one of those conditions that often isn’t discovered by the applicant until they undergo a medical examination for life insurance. This is because high levels of glucose or blood sugar normally don’t have any symptoms, especially in the early going.
Hepatitis
Hepatitis B or C diagnosis treatment is not a reason for denial once therapy is complete. However, it can be an issue if diagnosed before a life insurance policy application, or if it shows up on the life insurance exam itself.
To be able to get life insurance, you’ll first have to start some therapy, which could make you eligible for life insurance approval at a subsequent date.
AIDS or HIV
Can you be denied life insurance due to HIV? Although AIDS and HIV are better known now than in the past, and despite survival rates have improved dramatically, some life insurers nevertheless view them as red flags and might deny your application. But there are businesses out there which will offer life insurance, and people are the ones that you need to apply to.
Lifestyle Habits That Will Cause a Decline
Alcoholism
The combination of damage to health that occurs from alcoholism, in addition to the prospect of engaging in life-threatening activity is enough for most life insurance companies to issue a refusal.
When alcoholism is a present issue, the ideal strategy in applying for life insurance will be to delay your application until you have quit drinking.
The life insurance carrier needs to know sufficient time has passed that the claim of being sober can be substantiated.
Denied Life Insurance Because of Drug Use
Can I be denied life insurance for smoking pot? Though marijuana use is slowly gaining acceptance among life insurers. Due in no small part to how the process of legalization in more and more states.
Admitted or confirmed use of more powerful drugs are typically an automated decline when you submit an application for life insurance.
Just as is the case with alcoholism, even if you have a drug habit, the best strategy is to eliminate the medications and to start establishing a history of a drug-free life. In most cases, this will take up to three decades.
Driving Record
Much like participating in hazardous extracurricular activities, a jagged driving record can indicate that you live a harmful way of life. This is not to underestimate, as automobile accidents are among the leading causes of death, and especially prevalent among young men and women.
A history of numerous accidents or tickets, or certainly of repeated DUI/DWI episodes is a cause of concern for a life insurance provider. You might find it impossible to get life insurance before you are able to demonstrate a reasonable history of driving.
Past Declines on MIB Report
It’s possible to blame the Medical Information Bureau for this issue, however, life insurance companies subscribe to the system, which enables them to share information on approvals and denials with other insurance companies.
The main purpose of the system is to alert insurance companies about applicants that lie about their health conditions. Such applicants often go from 1 insurer to another, hoping to be able to pull off the huge lie and make they policy they want.
Hazardous Occupation That Can Cause a Decline
Some occupations carry a greater amount of risk than others. This will make life insurers reluctant to approve policies if you’re working in a job that has particularly hazardous. See below:
- Logging workers
- Fishers and related fishing workers
- Airline pilots and flight engineers
- Roofers
- Structural iron and steel workers
- Refuse and recyclable material collectors
- Electric power-line installers and repairers
- Drivers/sales workers and truck drivers
- Farmers, ranchers, and other agricultural managers
- Construction laborers
Should you work in one of these jobs, don’t be shocked if your life insurance policy application was declined.
What Are Your Alternatives from a declined policy? For These or some Other Reasons? The point of this list isn’t to tell you why you can’t get life insurance. But rather to provide the most usual reasons for denial, and more important — what you can do about it.
The first step is to discover the particular reasons for the denial. Make sure you find this information in writing, as it might be rather particular, and record more than 1 reason.
You’ll need this information in order to determine your next course of actions. That usually involves applying to another life insurance provider. But you should not do this until you know what the denial motives are. This way you can prevent a repeated refusal
***It’s important to understand that simply because you’ve been denied a life insurance policy in the past, does not mean you can never be accepted by another life insurance carrier.
Denied Life Insurance Coverage ~ Now What?
What can I do if I am denied life insurance? First of all, when you have health issues, going with the cheapest policy is not always your best option. It’s more important that you are working with the right insurance company, one that will provide reliable coverage.
Whether it be term life insurance or whole life insurance. Your life insurance agent will know exactly the underwriting guidelines for all the insurance agencies. If one will deny coverage due to smoking or health problems another will approve you.
Secondly, while we always encourage people to get multiple quotes before settling on a life insurance company, you shouldn’t apply for them all at once. You definitely want to check out the best life insurance companies. But if they see how many current companies you’re applying with, they’ll be less likely to insure you.
Finally, order copies of any medical records that were used by the life insurance company in declining your application. You will need to check these documents carefully to make sure they do not contain false or questionable information.
In case you run into any, you’ll need to make sure the data is fixed since it will appear in the database which virtually all insurance companies have access to.
Can you be denied life insurance for high blood pressure
You can get life insurance with high blood pressure. In fact, even if you are taking medications you will still be approved. The fact is if you are taking medications, many carriers will look at that as your symptoms are under control. or not present.
How Can I Get Life Insurance After a Decline?
So, how do you get life insurance after being denied? Don’t give up on finding life insurance from a past decline. Life insurance is one of the most essential purchases that a person can make. Without it, your loved ones are at risk of financial insecurity if something unfortunate were to happen to you.
Without life insurance, your family will inherit any of your debts. Furthermore, they’ll need to pay for your final expenses, which usually costs around $10,000.
It’s also important to remember that after you’re gone, your family will no longer be receiving the benefits of your salary or retirement income. You may want to consider replacing any income with your life insurance plan, as well.
Maybe a Diffrent Product
The amount of death benefits that you will need should be discussed with your agent. He will advise you as to the amount by calculating your salary and the age of your youngest child.
This is likely your most important strategy. Where one company might deny you, another may approve your program and welcome your business. For example, some life insurance businesses have a more positive view of smokers compared to others.
The trick, if you are a smoker, is to use only to those carriers that have a positive view of smoking. These carriers will provide you cheaper smoking life insurance rates. However, since you do not work in the market, you can not know who these companies are.
The most effective way to find life insurance is by hiring an independent insurance agent. An agent will know the ins and outs of the industry.
They’ll find the insurance companies with the most lenient medical underwritings. No matter whatever medical condition you may have, or any other reason for your previous denial of life insurance.
To sum up:
- Gather all your information ~ why were you declined?
- Check your MIB report ~ make sure all your medical information is accurate
- Call and work with your independent agent ~ your agent works for you, for free I may add. Be honest let him/her evaluate the situation. Let him know your latest exam results too. All carriers will look at every person different. Let him assess your medical/lifestyle history. When one carrier denies you, another will approve you. Be patient!
How Much Life Insurance Should I Get?
Choosing the amount of life insurance to buy is a huge decision. You want to make sure that you get a large enough life insurance policy to support your family after you pass. Below, we’ll list some things you may want to consider covering:
- Mortgage(s)
- Any debts you may have
- Children’s college tuition
- Final expenses (funeral services usually cost around $10,000)
- Replacement of salary or retirement income
Once you decide on what you would like covered, then it’s time to calculate the total cost. From there, you’ll have an idea of how much life insurance you’ll want to buy.
Where Can I Get the Best Quote for Life Insurance?
My name is Danny Ray. I am the owner/agent of PinnacleQuote Life Insurance Specialists. We are licensed in 49 states. We have over 300 products to offer you.
PinnacleQuote is a family-owned business. With over 25+ years experience, my goal and passion is make sure you are not over paying for life insurance by even 1 penny! I am with you for the long term. You and I will be joined to the hip for the process. And long after you can reach out to me anytime.
Call us today with all your questions! (855) 380-3300.
FAQs
Q: Can I reapply for life insurance after being declined?
A: Yes, you can reapply, but it’s advisable to address the reasons for the initial decline and consider working with an insurance professional to find the most suitable coverage options.
Q: Can I appeal a life insurance declination decision?
A: Some insurance companies allow appeals. You may need to provide additional information or medical records. Check with the insurance company for their specific appeals process.
Q: Will a declined life insurance application affect future applications?
A: Yes, a declined application may impact future applications. It’s crucial to understand the reasons for the decline and take steps to improve your insurability before reapplying.
Q: How can I improve my chances of approval for life insurance in the future?
A: To enhance your chances of approval, address any health concerns, adopt a healthy lifestyle, and seek guidance from an independent insurance agent who can help you navigate the underwriting process and find suitable coverage options.
Q: How long should I wait before reapplying for life insurance after a decline?
A: The waiting period before reapplying can vary. It’s advisable to address the specific issues that led to the decline and wait until there have been significant changes, such as improvements in health or lifestyle.
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Conclusion
You might have been turned down for life insurance, but that doesn’t mean you can’t get covered. In fact, there are a number of options available to you if your policy was declined. Just because the company says no does not make it so!
There is hope and we want to help find what will work best with your needs. Get in touch today and let us show you how easy it is to find an affordable solution for all of your life insurance questions. Who knows? Maybe this time around they say yes!
Fill out our form or give us a call at 1-855-380-3300 now and ask about any available discounts on the coverage you need most right now.
