What to Do If You’re Declined for Life Insurance
In our last post, we discussed common reasons for being declined life insurance. In this post we are going to discuss what to do if you’re declined for life insurance. Being declined for life insurance can be a stressful situation for most people. After all, how will you be able to financially protect your loved ones without life insurance? It is important to know that just because you were declined coverage by one company, that doesn’t mean another company won’t approve you. So if you’ve been declined for life insurance and aren’t sure what to do next, don’t panic. Read on and find out what you need to do if you’ve been declined for life insurance.
Find Out the Facts Surrounding Your Decline
Which Life Insurance Company Declined You? – It goes without saying that choosing the right life insurance company can make all of the difference in the world. There are many companies out there that have very conservative underwriting guidelines and choose not to approve applicants with even moderate health risks. Ask your agent which company declined your coverage. Your decline might have simply come down to the fact that you applied with the wrong insurance company.
What Was the Specific Reason for Your Decline? – It is important to have your agent find out the specific reason why you were declined coverage. In some cases, you could be declined because of something that was found in your lab results. If an issue in your lab results is the reason for the decline, make sure the insurance company specifies the reason and ask for a copy of your lab results as well. You could also be declined because of something found in your medical records if reviewed by the insurance company during underwriting. In that case, you should ask the insurance company to point out the specific issue in your medical record that led to the decline, including the date of the issue as well.
Fix any Mistakes with Your Labs or Medical Records – If you were declined due to an issue found in your lab results, check with your doctor to see if the issue is consistent with results in past blood tests. It is important to note that what you eat and drink as well as any medicine that you take in the days prior to your paramedical exam could skew your lab results. That’s why proper preparation for your paramedical exam will ensure the best results. If you were declined because of something found in your medical records, ask your doctor to explain the situation in question to you. Sometimes a decline could come down to something as simple as not having a test done that your doctor ordered. In other cases, there might simply be an error in your records which your doctor should be willing to amend. Some legwork might be involved in clearing up any discrepancies that exist in your lab work or medical records, but doing a little extra work could definitely be worth it in the end.
Create a Game Plan – Being declined life insurance doesn’t necessarily mean that you’re uninsurable. You may have simply applied with the wrong company or used the wrong agent. You should work with an independent agent that is knowledgeable about which insurance companies are best at underwriting specific risks. An independent agent can also shop your coverage to multiple carriers to find you the best coverage option based on your particular situation. Your agent should gather as much information about your particular case, including all of your medical information as well as the details of your previously declined application. Once they have all of that information, they can properly shop your case to find the right insurance company for you.
What if You Still Can’t Get Approved? – If you are unable to qualify for a traditional fully underwritten policy, you do have a couple of options. Simplified issue life insurance and guaranteed issue life insurance do not require a medical exam. With simplified issue life insurance, you will have to answer a few health related questions, but most people can qualify. With guaranteed issue life insurance, there are no health related questions and you are guaranteed coverage. Guaranteed issue life insurance has a “graded” death benefit. This means that the policy has to be in force for a specific period of time, usually two years, before it will pay a full death benefit. In most cases, if you die within the graded period, your beneficiaries will only receive the premiums you paid into the policy plus interest. Since the insurance company is doing minimal, if any, underwriting on these types of policies, the face amounts are very small and the coverage is expensive. These types of policies should really only be looked at as a “last resort” coverage option.
Conclusion – If you’ve been declined life insurance coverage, don’t give up. We would be happy to give you a complimentary second opinion on your situation. We have access to over 40 of the top insurance companies in the industry and we know which ones view certain medical issues most favorably. If you’ve been declined life insurance and need some guidance, give us a call at 888-687-9444 or email us at info@archstoneagency.com .
About Us – Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com
