You were expecting a yes. Now what?
It happens. Even to those of us who don’t expect it at all. You applied for life insurance because you know it’s essential— assuming that you’d get coverage, start paying your premiums, and then feel a great sense of peace knowing that your loved ones will be taken care of in the event of your death. But then, to your surprise, you receive notice that you’ve been denied by the insurance company. How could this be? And now what? Although it is shocking and worrisome to receive a rejection on a life insurance application, it’s not the end of the road; nor does it mean that you cannot get coverage:
First: get the facts
Although you are probably strapped for a reason that you’d be denied, the insurance carrier had to do their homework and gather all of the required information before making their decision. The first order of business would be do get in touch with your provider and simply ask for an explanation. By law, you have the right to request this information and should be provided with a detailed reasoning of their denial. Some factors that could lend to a rejection include:
• High risk health conditions (diabetes, obesity, history of DUIs)
• Drug use
• Risky hobbies including skydiving, base jumping, and scuba diving.
• Risky jobs including steel workers, electrical power line installers, and pilots
Correct or confirm information
Mistakes happen, and it is possible that somewhere along the line, the insurance carrier was given erroneous information regarding your medical records. If you’re in good health and have never had any of the conditions that are considered risky, it’s a good idea to get your medical records and review all of the information that was provided to the insurance company.
Get a second opinion
Even if you’ve had some medical issues in the past or you’re considered risky to one broker, there are some carriers that work with those who are deemed high-risk. If you smoke or have a drug or alcohol habit, you may also still be able to find a carrier. However, in this case you can expect to pay a higher premium and may incur a maximum death benefit. Because different insurance carriers have different underwriting processes, knowing your options can help you find the right company and a policy that will be an ideal fit.
Have a physical
If you were denied for health reasons, make an appointment to see your doctor and have him or her asses your medical condition. Beginning a treatment plan or medication can help when you have high blood pressure, triglycerides, or are suffering from diabetes. And once you do this, you can either reapply or get back in touch with the insurance company to update their information.
The most important thing to remember is that if you’ve been denied, life insurance coverage has several options. And while it may be alarming, these steps are likely to help you find a resolution to the issue or open you up to coverage options from another carrier.
When you’re ready, give us a call at 305-648-7070 and we’d be happy to help you. As a leader in the insurance industry, we work with numerous carriers and can assist you in finding a life insurance solution to suit your unique needs and risks. Reach out to us today.