5 Actions to Take if the Life Insurance Application is Denied



5 Actions to Take if the Life Insurance Application is Denied

5 actions to takeApplicants are wise to provide accurate information in every section of the forms required to purchase a life insurance policy. Situations that require explanation must be handled according to the company’s instructions. Certain health conditions and personal activities can make the applicant uninsurable in the underwriter’s opinion. Although rare, life insurance companies do deny coverage in specific situations.


Standard life insurance policies are grouped according to risk class to ensure that each policyholder pays fair annual premiums. An individual cannot be charged a different rate from others in a comparable class. In those instances where the individual presents more risk than all other classes of life insurance, the insurer will refuse to underwrite the policy. The applicant can take specific steps to acquire sufficient life insurance coverage.


5 Actions to Take if the Life Insurance Application is Denied


1. Do not panic! Extended underwriting activities and multiple requests for information should not cause the applicant to be concerned. At times, the underwriter will deny the application for insufficient information. The applicant must remain calm and rational throughout the entire process. Adequate responses convey willingness to comply with the requirements for completing the application and buying life insurance.


Misunderstandings are common since the underwriter is working on dozens of cases concurrently. Life insurance applications require significant examination, which is conducted in multiple departments of the company. Mishandling is possible at any stage of the process.


2. Request information – Applicants are encouraged to request specific reasons for the insurance companies denial of the application. Lack of payment for the first month of the policy can cause the insurer to refuse the application. The applicant can correct this situation quickly and painlessly. In other instances, the medical exam might reveal a health issue that was unknown to the applicant. These situations must be addressed immediately for the ongoing health of the individual.


A list of risky hobbies can cause the life insurance company to refuse to underwrite a standard policy. In this instance, the applicant can seek a specialty life insurance policy through a different insurance company. Unmanaged medical conditions are the primary reason for the life insurance company to deny an application. Applicants must prove to the underwriter that the health situation, such as high blood pressure or diabetes, is managed under the care of a physician.


3. Have a full physical – Simple medical examinations can be inaccurate in the discovery of certain health conditions. An applicant who discovers the presence of a health problem should visit the family physician for a complete physical exam. The results of the tests can be submitted to the same insurance company for further review. Doctors are helpful partners in the quest to establish a treatment plan that will reduce the perceived risk of premature death.


Applicants have many options in the quest to live a healthy life and secure sufficient life insurance coverage. Health conditions that are managed carefully are evaluated differently during the underwriting process. Applicants should remain in contact with the life insurance company as the health management plan is implemented.


4. Validate medical records – Mistakes are present in the medical profiles of many individuals. The accuracy of electronic records must be validated when the applicant receives a denial from the insurance underwriter. Discovery of mistakes will require contact with the family physician. Corrections will require time since the changes must be made in the MIB Group database.


5. Find a brokerage or agency – Applicants might benefit from the professional guidance offered through a life insurance broker or agent. The independent life insurance broker represents multiple life insurance companies. Clients benefit from the broker’s knowledge of the companies that will underwrite non-standard policies. In addition, the broker reduces the amount of work the applicant must perform personally.


Life insurance agents work for specific companies that offer the agency model in the local community. Applicants benefit from the long-term relationship with agents who will become familiar with family insurance needs. Both types of insurer representation offer specific benefits for the life insurance shopper.


Stay in the Process


Receipt of a denial from the life insurance underwriter does not spell uninsurability. Applicants should be diligent in the quest to find the best life insurance policy at affordable rates. Waiting a few months to reapply might be more beneficial than settling for an expensive policy in a high-risk class. Certain situations require diligence and patience since the applicant is dealing with perceived risk. Professional insurance advice is invaluable when the application falls outside standard underwriting guidelines.


Above all else, the applicant must remain vigilant in the quest to communicate clearly with the underwriter. Additional requests for information must be fulfilled in a timely manner to provide answers to important questions. Long delays in responding to inquiries can cause the life insurance company to deny the policy. In this case, the applicant would be required to start the application process again.

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