If you have recently been denied coverage from an insurance company that you applied to, it might be because you are considered an “impaired risk”. This means you have something in your background that leaves you predisposed to a higher risk of dying prematurely. This can be anything from diabetes to a previous cancer diagnosis or even a string of DUIs.
While these types of applicants understand that they will run into problems when trying to get insurance, it doesn’t mean you won’t be approved by a different insurance company. You still have options available to you with a more suitable company or you can always apply for a different policy type.
Here are some actionable steps you can take when you have been denied life insurance.
Collect as much information as possible
Before your insurer denies your application, they need to collect lots of information on you from multiple different sources so they can evaluate your risk properly. If your risk is high enough, then you are either rated, postponed or denied. In these circumstances, requesting information on your denial is within your rights.
When you request it, the carrier is able to provide detailed information on why your application was denied. This can be due to medical history, exam results, driving records or something else.
Confirm your results
Mistakes can happen, so make sure to double-check the information that was given to the underwriter. If the cause was poor exam results, confirm it with your primary care physician. In some situations, a company might deny coverage because of undiagnosed lab results even if there is little cause for concern. You could also be denied because of occupational or recreational hazards, criminal records, or financial distress. Having records that are not updated or detailed can lead to declines because the underwriter can’t assess the proper risk profile.
Get help from an agent
Even if you do some serious research, the company you apply to first isn’t always the best option. Passing along your information to an agent can help them search for better options. Any well-trained high-risk life insurance agent is able to assess your information thoroughly and find the best fit for you. Understand what one carrier might deny you for another might accept. Each life insurance company operates under a different set of underwriting guidelines. This means that identical applications to two separate carriers can end up with different results.
There is no one-size-fits-all solution for those who are fighting against an insurance denial. However, taking these steps, it can help you alleviate stress and annoyances that make finding coverage difficult.