What happens if my application for life insurance is denied? |
Posted: December 1, 2022 |
People who are turned down for life insurance are generally in a higher risk category. This is usually due to health problems such as diabetes, obesity or a previous diagnosis of a serious illness. In addition, there are other reasons unrelated to health for which your application may be rejected. For example, having hobbies or doing risky activities like skydiving; have many tickets for speeding or driving under the influence of alcohol; having a dangerous job like being a roofer; have a criminal record or questionable financial history; smoking or failing a drug test. Whatever the reason, there are steps you can take if you'r insurance claim rejected help. Contact your agent or insurer: They will verify that there was no mistake in the application and give you an idea of ??why the life insurance coverage was denied. Confirm the results: If they state that the rejection is due to health issues, talk to your doctor to make sure it really is a cause for concern. If the reason for the rejection is not related to health, confirm that the reason they state is valid. Consider appealing the decision: If your life insurance application is denied for incorrect or insufficient information, you have the right to appeal the decision. The best way to win your appeal is to submit complete information in a timely manner. This means that your doctor must add as much up-to-date information to your medical record as possible and present the most recent and reliable information about your personal history. This can include anything from a credit report to a driving record to up-to-date information about your occupation. How to Get Life Insurance Coverage After a Denial If you were denied coverage and still want to purchase life insurance, you can do this: Talk to a reputable insurance agent: Many people who want to purchase life insurance coverage have their own application turned down. A reputable insurance agent who works with many insurers can help you apply for coverage where you are most likely to be accepted. In addition, an agent can also help you with the application and appeal process if you are denied life insurance. What's more, some agents specialize in helping higher-risk people purchase life insurance. Use our agent locator to get started on the process today. Submit a request to another insurer: Each insurer has different criteria when approving life insurance policies. Before you lose hope, you can submit a life insurance application to one or more insurers. Research work life insurance plans: You may be lucky and your employer can get you coverage through a group life insurance plan. They may not offer you the coverage limit you want, but having life insurance is always better than having nothing. Most group life insurance plans do not require a medical exam. Please try again later: Use a waiting period to check or improve your health, quit smoking, clean up your driving record and get your finances in order. If an insurer sees progress in these areas, they will most likely offer you coverage. Consider a different life insurance policy: It should be reiterated that any amount of life insurance, no matter how low, is better than having nothing. If you have exhausted all other resources, you can consider these policies: Simplified Issue Life Insurance: With this option, you typically complete a quick life insurance application online. A medical exam is not required, but you may be asked questions about your health. The approval rate is usually high and instant coverage is achieved. The disadvantages are that the coverage limit is usually low and the premium costs more when you consider the price compared to traditional life insurance coverage. Guaranteed issue life insurance: With this type of insurance, you can skip the medical exam and questionnaire. As the name implies, coverage is guaranteed to whoever applies for it. However, there is usually a waiting period before beneficiaries receive their full benefit payment in the event of your death. The waiting period can last several years. In addition, there are no higher coverage limits and the premium costs more when considering the price compared to traditional life insurance. No matter where you are in the application, it's always a good idea to contact a reputable insurance agent. They will walk you through the entire process and help you identify options if you are denied coverage. If you don't have an agent or advisor to talk to, you can use our agent finder . You can also speak directly with an insurance company. These are the business partners who support our non-profit mission and can help you purchase coverage directly or through one of their agents or advisors. The key is to take the plunge today.
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