What you can do if you’ve been denied life insurance.
If you have applied for life insurance, then having your application denied can come as a shock. However, this is actually more common than you might think. Oftentimes insurance companies refuse coverage if the applicant is too risky to insure. However, just because you’ve been denied life insurance coverage doesn’t mean that your journey is over. Here are some of the steps that you should take after your initial life insurance application has been denied.
- Gather Information
As insurance companies consider life insurance applications, they conduct research to determine the applicant’s risk. If they determine that you are high-risk, then they will deny your policy. Luckily, you can request information about your denial from the company. At this point, the insurer will provide detailed information on why they refused coverage. For instance, they will say if the denial was due to your medical history, current exam results, driving record, or another factor. Once you understand why your application was denied, you can take steps to address your risk.
- Verify Results
Underwriters are human, which means that it’s possible for them to make mistakes. This is why it’s important that you double-check their findings. For instance, if bad medical exam results were stated as the cause of your denial, then verify your current state of health with your primary care physician. If they determine that you are in good health, then turning in this official report could mean your application will be reevaluated.
Sometimes, life insurance applications are denied due to occupational dangers, recreational hazards, criminal records, or financial instability. If you have these records, but they aren’t updated or detailed enough, then an underwriter may deny you coverage because they cannot accurately assess your risk. So, by providing additional information, you can have your application reevaluated and potentially accepted.
- Work with an Independent Agent
Sometimes, the first company you apply with isn’t the best option for you. After your application is denied, you should partner with an independent agent so they can help you find some better options. Your agent can sort through all your carrier options and find a company that’s underwriting guidelines will accept you, despite your risks. For instance, if you have diabetes, then your agent can look for companies that will cover individuals with diabetes so long as their condition is well-managed.
These are some of the things that you can do after you’ve been denied life insurance. Do you need help with your life insurance coverage? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California today.