What To Do When You Are Denied Life Insurance
So, you have applied for life insurance and you have been denied by the company. It is tough, especially when you were expecting a full “yes.”
But then, the company found you in the “impaired risk market,” meaning, you have something in the background that puts you at a higher risk of premature death. Things like obesity, diabetes, any diagnosis of cancer in the past might have pushed you in that bracket.
So, what should you do now? Here are a few effective steps that financial advisors at Trust Life recommend you to take.
- Collect information
Before an insurer denies a claim, they collect a lot of data from multiple sources to assess your risk. If the risk is high enough, you are assessed, postponed or refused. If your life insurance application is rejected, requesting more information about the reason for denial is your right.
Upon request, the life insurance company can provide detailed information as to why an applicant is refused, whether due to medical history, current test results, driving record or otherwise. This may come in a shock to you because you may not even be aware of an illness you might have.
- Confirm the results
To err is human. Double check the data provided to the insurer. If the life insurance company has rejected you due to poor medical test results, confirm this with your primary care physician.
In some cases, a business may simply decline coverage because of undiagnosed laboratory results, even though the cause of concern is very little.
Also, you could be rejected for recreational hazards or work, a criminal record, and even financial distress. Having records like these, which are not up-to-date or sufficiently detailed, can lead to postponements or rejection as the insurance underwriter simply cannot assess an appropriate risk profile.
- Work with an experienced financial advisor
Even with proper research, the first company you apply to isn’t always the best. Providing detailed information to an advisor can help them find better options. A well-trained high-risk life insurance advisor can assess the information thoroughly and find the right one for you.
But you should also understand that applying to another carrier is only an option if the reason for the denial (such diabetes) is that the other can accept (because your diabetes is under control with medication).
Underwriting guidelines vary from life insurance company to company. This means applying to different life insurance carriers could yield different results.
As far as life insurance is concerned, there is no one-size-fits all. Applying to different life insurance companies can easily yield different results. If the cause of denial is too serious, opting for a different type of life insurance (preferably, non-medical life insurance) is the only option.
Get in touch with our advisors if you are facing trouble getting a life insurance. The consultation is free with zero obligations. We have over 30 years of experience providing expert insurance and investments advice to businesses and individuals in Toronto, Mississauga, Brampton, Ajax, Pickering, Oshawa, Markham, Vaughan, Milton, Oakville, Burlington and Hamilton.