Denied Life Insurance? What Now?

Couple looks stressed over denied life insurance application.

Photo by Monkey Business on Adobe Stock.

Getting Denied Isn’t The End

Getting a life insurance policy is a serious financial decision made with the best intentions to provide for your family when you are no longer here. Have you been denied life insurance? It can be disappointing when your application is denied. It is important to note that this is not the end of the road for obtaining coverage. There are always other options you should and can pursue.

Steps to Take If You’re Denied Life Insurance

If you are denied life insurance, you should not feel alone. Usually, those that fall into a high-risk category are also typically denied. Health challenges such as diabetes, obesity, or other previous diagnoses of serious diseases can cause a denial of your application.

Aside from those health conditions, high-risk applicants partake in risky hobbies and behaviors such as skydiving, speeding in their vehicle, working dangerous jobs, smoking cigarettes, having a criminal record, DUI history, and a spotty financial record.

Whether you fall into any of those categories or not, there are some immediate first steps you can take when you are denied approval.

  • Contact your agent or the insurer. Have a professional look over your application to determine if you made any mistakes. They may also have insight into why your application was rejected.
  • Confirm the results. If your health was the reason for denial, have a visit with your doctor to ensure that there is no cause for concern. If the reason isn’t regarding your health, do your due diligence to confirm the reason is valid.
  • Consider doing an appeal. You are able to appeal the decision if your application denial was due to incorrect or insufficient information. To have the best chance at winning, you should submit updated information as soon as possible.

What Now?

Being denied life insurance doesn’t have to be the final outcome. Speak to a licensed insurance agent and have them help you search for other forms of coverage. If you are denied a permanent policy, you still have the option of a term policy for coverage. If you hit a brick wall with those options, check with your employer to see if they offer group life insurance as a part of their benefits package. It may not be the best coverage, but it does present some protection for you while employed.

If none of these strategies work, you may need to let time work its magic. Focus on creating a healthier diet, lowering your blood pressure or cholesterol, or quitting smoking. If you were denied based on financial issues, take the time to build your credit or fix any money issues you had.

Once you get a life insurance policy, you want to guarantee it pays out. Click here to read about why a life insurance claim can be denied and how to avoid it.

Life Insurance Questions?

We hope that this information on what to do after your life insurance application is denied is useful to you.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.

Get affordable life insurance quotes by clicking here.

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About Kayla Gonzalez

Kayla is a graduate of Texas A&M University and joined the Empower Brokerage marketing team in early 2021. She creates content for the company websites and assists with various marketing campaigns. LinkedIn Profile

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