We don’t like hearing ‘no’. However, being rejected at some point in our lives is inevitable. Whether it is in our job search, credit card or mortgage application, we can get declined – this includes life insurance. Declined life insurance application can evoke feelings of uncertainty and worry about lack of protection for our loved ones. The important thing to do if this happens is not to panic – it’s not rejection, it’s redirection. When people are declined for a mortage, they try a different lender. Similarly, there are options for individuals who have been declined for life insurance. Insurance providers have their own underwriting guidelines and evaluate risk differently. Due to these underwriting principles, your application might be declined by one insurer, but approved by another.
Here are three things you can do if you have been declined for life insurance:
Find out why the application was declined
The first thing to do when you find out your application has been refused is to find out why. Reach out to the insurance provider for further information. Knowing the reason why can provide guidance and insight when applying for life insurance in the future.
Common reasons for declined applications include pre-existing conditions, lifestyle factors (i.e. high-risk professions, participation in extreme sports), age and a criminal or driving record. Results from medical exams may uncover serious condition(s) that the applicant is not aware of. Consult with your doctor to confirm the results from medical exams.
Mistakes can also happen, so make sure all information provided to the insurer is honest, correct and up to date. Applicants can verify information with the insurance provider or MIB. Established in 1902, MIB Group (formerly the Medical Information Bureau) is a member-owned, not-for-profit corporation operating in the United States and Canada. MIB’s services are designed to protect applicants, policyholders, and insurers from omissions or misrepresentations made on applications for life, health, disability income, critical illness, and long-term care insurance.1 Individuals can request their MIB Underwriting Services Consumer File (if one exists) once per year, free of charge, directly from MIB.
Work with an insurance advisor
Life insurance advisors are knowledgeable about the industry and can help you determine the best plan for your needs. Since they have access to various products from multiple providers, they can help you compare quotes and better understand the features and benefits that each plan has to offer. They can advise you whether it’s best to wait before applying again or to go to another provider with a different underwriting process.
Life insurance advisors can also explain the difference between ‘declined’ and ‘postponed’ applications. While ‘declined’ means that no policy will be issued, ‘postponed’ refers to ‘no, right now’. The insurance provider will be willing to reconsider your application – once additional information is provided, or your condition is stabilized (due to recent medical diagnosis, new medications or abnormal test results).
While you may be disappointed about your application being denied or postponed, your life insurance advisor might have better options for you. Have you considered a different coverage amount, term duration or alternative life insurance product altogether? They will help you find the right product for your needs. Click here for tips on finding the right insurance advisor.
Apply for No Medical Life Insurance
If you have been turned down for traditional life insurance, you still have options! With No Medical life insurance, there are no medical tests or exams. All you have to do is truthfully answer all health-related questions. Applying is simple and straightforward, and the policy can be issued in just a few days. This is a great option for people who have a fear of medical exams or needles, or just want a hassle-free application process. With No Medical life insurance you can choose between permanent life insurance (coverage for life) or term life insurance (coverage for a pre-determined length of time – 10, 20, 25 or 30 years).
Canada Protection Plan offers No Medical and Simplified Issue Life Insurance, and we don’t ask if you’ve been declined life insurance in the past.
No Medical and Simplified Issue Life Insurance Underwritten by Foresters Life Insurance Company
The information contained is as of date of publication and may be subject to change. These articles are intended as general information only. A licensed advisor should be consulted regarding your specific situation.