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What to Do If You’ve Been Denied Life Insurance

August 24, 2022
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

Being denied life insurance when you weren’t expecting any issues can be disappointing.

If you know you have health issues, a decline might not come as too much of a surprise. But, for some, being declined is completely unexpected.

When you apply for life insurance, a lot of personal information is requested in order to assess your risk to the insurance company. There are some health conditions or personal habits and hobbies that might make you a higher risk to insure.

The insurance company will thoroughly review your information. If their actuaries calculate that you’re too much risk for them to take on, you’ll be denied coverage.

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

What to do if your life insurance application is declined:

Talk to your agent.

Sometimes applicants may be denied because not enough information was provided or there was a misunderstanding. Insurers collect a lot of information from different sources in order to assess your risk.

As the applicant, you have the right to request information regarding why you were denied. It could be due to your medical history, driving record, or even your life insurance medical exam results.

Talk with your broker or agent to figure out what options you have.

Make some changes in your life.

If you were denied coverage because of a health or lifestyle factor, there may be an opportunity to make some changes and re-apply.

For example, if you were denied due to your build, you can work on making diet and exercise changes over the next year. If your health profile improves, the insurance company may reconsider your application.

Consider other insurance options.

Even if you’re denied traditional life insurance, accidental death insurance is likely still an option. This policy provides a death benefit if you die as a result of an accident.

Unfortunately, it’s not full protection. If you die as a result of illness, such as a heart attack or cancer, it won’t pay a death benefit. But it still provides some peace of mind. And it’s not expensive.

Another suggestion would be to look into any life insurance offered to you through your employer.

Group life insurance is guaranteed-acceptance, even if you were denied by traditional life insurance.

An employer typically only offers group life insurance that’s 1-2 times your salary, but workers often have the option to buy additional employer-sponsored life insurance without needing to provide proof that they’re insurable. This is voluntary supplemental life insurance.

If you were denied traditional life insurance, accept the group life insurance coverage and buy as much voluntary supplement coverage as you can comfortably afford.

A third option is guaranteed issue life insurance. If you’re between the ages of 50 and 80 and you were denied traditional life insurance, guaranteed issue may be available.

These products do not require any medical exams or medical records. The insurance company expects to take on a lot of risk with these applicants, so guaranteed issue life insurance premiums are quite expensive. It’s often referred to as “last resort life insurance”. But if you want life insurance for your final expenses, it may be something to consider.

Apply through a broker.

If you applied through a captive agent, it may benefit you to apply to a broker. Captive agents can’t shop around to different life insurance companies, while independent brokers have access to many.

Not all life insurance companies underwrite the same way, so you may be able to find coverage elsewhere.

At Quotacy, we represent multiple life insurance carriers and have high-risk underwriters. Your dedicated Quotacy agent will assess your situation and work to find the best fit for you.

Start the process now by getting free term life insurance quotes.

Comparison shop at your own pace without being required to give up contact information. Once you submit your online application, Quotacy goes to work for you.

We cannot guarantee that we will be able to find a carrier to offer you a traditional life insurance policy. If this ends up being the case, we may be able to help you with other options such as guaranteed issue life insurance or an accidental death plan.

Watch the Declined for Life Insurance Video

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