Many people believe that they have no other recourse if they apply for a life insurance policy and are denied. The fact is, in most cases, even if you are denied for one policy, you can still get life insurance. After your life insurance application is denied, you may be more limited in your choices, but coverage is often available even if you have a pre-existing condition. This blog will guide you in case your life insurance application is denied.
Reasons for Denial of Life Insurance Application
- Chronic or Progressive Illness
A chronic or progressive illness directly impacts your health and may result in a failed medical exam. It will depend on what type of policy you are applying for. You may not be able to get exactly what you want in terms of coverage, but you do have options.
- Providing False Information
Many people put false information on their applications, hoping they will get a better premium/deductible. If your insurance company finds out that you have falsified your information, they will terminate your policy. They can also flag you so that other insurance companies are aware of the indiscretion.
- Age
Your age will determine what type of policy you can apply for. If you are older, your only option may be a term policy. Applying for life insurance at a young age is the best way to guarantee approval.
- Lifestyle Choices
Lifestyle choices such as smoking, alcohol consumption, high-risk hobbies, or employment can all have an impact on your ability to purchase life insurance. Eliminate the risks, and your chances of approval will improve.
- Being Unable to Pass a Life Insurance Physical
If you are unable to pass a physical, you may have other options. Term insurance is one way to get life insurance without submitting to a rigorous physical examination.
What Can I Do If I Am Denied Life Insurance Coverage?
The first thing to do if you are denied is to talk to your agent and find out why. Next, you will need to find out what your options are. Talk to your insurance provider and find out what other policies you may be eligible for.
FAQ
Are There Different Types of Life Insurance Plans Available?
Yes. There are term policies, whole life, and universal policies. Each one has benefits that make it unique.
How Do I Know What Type of Life Insurance Plan I Need?
You will need to know what your goals are. Do you have a family that you will need to provide for, or are you just trying to find a way to take care of your final expenses and any leftover debt?
When Should I Consider Purchasing a Life Insurance Policy?
The younger you are, the better. If you apply for life insurance while you are in your 20s, you will have many more options to choose from. Many of your insurance options will begin to fade away as your eligibility diminishes as you get older.
Can I Borrow Against My Life Insurance Policy from a Bank?
There are policies available that allow you to borrow against the equity you have paid into them. Some have cash value options that continue to grow as the policy matures.
Are There Policies I Can Use While I’m Still Alive?
Many policies allow you to cash them in once they have reached maturity. This can be quite a windfall if you have had the policy in place for many years.
If you want to learn more about life insurance, talk to our insurance experts at Action Insurance Group at your earliest convenience. Our insurance professionals can give you the information you need to make an informed decision.
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