How to Handle a Declined Life Insurance Application
Getting your life insurance application declined can leave you extremely confused and not sure of what action you should take next. One article by Yahoo Finance stated that most of the reasons as to why people are declined from a life insurance policy is due to factors that they don’t even know about. Otherwise, they are often denied because of a past or current health issue. Here are a few tips to follow when you have a declined life insurance application.
Know The Facts
Look into the company or companies that declined to offer you a life insurance policy. Keep in mind that there aren’t very many life insurers that will approve a case that is even moderately impaired, and so if you applied for a policy and were denied because you have some health condition, it is best to just apply else where. Even if you are able to gain an approval from a company that has denied you, it will come at an insanely high price that isn’t even worth the insurance. Knowing that you were declined from a company that really just doesn’t want your business will make it easier for you to shop elsewhere.
Find Out Why You Were Declined
It’s important to know exactly why you were declined for life insurance. Don’t let the insurance company give you a vague response such as because of information found on your medical records or lab results, dig deeper to find the specific reason. Find out exactly what lab results came out abnormally and even get a copy of those labs. If it was in your medical records then try to obtain them, if you are denied access (which is possible, as insurers do not have to provide you with a copy) then ask them to help you by giving the date that the record was entered.
Make Sure Your Medical Records Are Accurate
Go over all of the details of your medical records in order to ensure that they are completely accurate. Medical records are similar to credit reports in that they are subject to misinformation. Ensure that your medical records show that you were compliant with your doctor. If you decided to quite taking a certain medication, was your doctor in accordance with it? If you doctor instructed you to follow up within a few months on something did you do so? If you took some medical action that your doctor did not sign off on then it is recommended that you find a second opinion from another doctor who supports your position. Otherwise, this is most likely the cause of getting declined for life insurance, and so there is not much you can do. In most cases underwriters consider your doctor’s orders as law and completely valid unless another valid source supports a change.
Once you have all of the details as to why you were denied in the first place then you can shop around. You should take into consideration all types of life insurance including term and whole life, as it may be easier to obtain one over the other.
The Bottom Line
Getting declined from life insurance means that you have to create a plan of attack in order to turn your decline around into an approval. The worst thing you can do is to continuously apply to different life insurance agencies with the same application, as you will continue to be declined for the same reason. Instead make sure to do your homework and understand the reason as to why you were declined in order to see if you could make some changes to get a better outcome.
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