Application for life insurance
If you’ve had an application for life insurance denied, your first reaction may be disbelief or anger or even a feeling hopelessness if you’ve been denied several times. If you’ve been denied, then the first thing you need to do is find out the exact reason or reasons why. Speak with your agent or call the life insurance carrier directly. They will tell you the reason for denial. Once you know why you’ve been denied, you can come up with a secondary plan to get life insurance coverage for yourself.
Applying for life insurance
What most people who are shopping for life insurance don’t realize is that you should have a strategy when applying for life insurance. The majority of people are not in perfect health and most people don’t have the “perfect” height and weight. That means that you will need to be specific about which life insurance carriers you apply with because all carriers have different underwriting criteria. It’s not just about getting a quote and applying with the company who has the lowest rates.
For example, are you a smoker? If so, then there are carriers who have better rates for smokers than others. Are you diabetic? There are some carriers who will automatically deny you if you are diabetic, even if you have a great A1C reading. Other carriers will give you a standard rating if you have a good A1C level. Have you had cancer before? Some carriers will deny you no matter what, while other carriers will insure you if it has been at least 12 months since your last cancer treatment. Another good example of this is height and weight. Every carrier has their own acceptable height and weight table. If you are 5’10″ and 225 pounds, carrier A might consider you overweight and give you a less than favorable rating, while carrier B will consider that normal and give you a standard rating. As you can see, the underwriting standards can vary greatly from carrier to carrier.
Choose approved carrier
That’s why it is so important to deal with an experienced agent who works with multiple companies. I would say they should have access to at least 30 carriers, though the more the better. Be upfront about all of your health issues, family health history, your smoking history, your height and weight, and occupational hazards and hobbies. Don’t try to hide anything from the agent because it will only hinder them from making the best recommendation for which life insurance carrier is best for you. An experienced agent should be able to choose a carrier who will get you approved the first time at the most favorable rates for your situation.
If you have some serious health issues, then there are still options available to you, though it will be more expensive.