So, you finally went ahead and applied for that life insurance policy your significant other has been bugging you about for the better part of your relationship. You found a great insurance company with competitive rates and submitted your application.
But, a few days later you learn your application was denied. Now what?
It is important to know insurance companies can deny coverage for a variety of reasons such as:
Health – Underwriters may decline coverage if certain health targets are not met or if you suffer from any chronic conditions.
Hobbies – Dangerous activities including skydiving, free diving, or automobile racing may disqualify you from coverage.
Records – If you have a bad driving record or criminal background, coverage could be declined if it is believed you engage in high-risk activities.
Financial – Insurers could use your credit score as a determining factor in whether coverage will be offered.
Occupation – Even if you are a healthy individual, some occupations including such as firefighters, pilots, or farmers may result in a declination.
Regardless for the reason of declination, there are steps you can take to secure the life insurance coverage your family needs.
Step #1 – Contact the insurance company and learn the reason why a declination occurred. From there, make sure they have all the correct facts. Insurers may decline coverage when they do not have clarity about the individual seeking insurance.
Step #2 – If the reason for declination is valid, reach out to us. Unlike going direct to one company or applying via a website, independent agents like work on your behalf and can shop your story in the marketplace.
If, after both steps and been tried but coverage still cannot be found, work on resolving any controllable issues. For example, if you engage in high-risk activities, take a break until an insurance company will consider you. Or, if you have health concerns, work with a physician to help you present more favorably to the insurer.
Life insurance is one of the most important coverages you will ever purchase. Not because it protects you, but those who depend on you most.