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Denied for Life Insurance: What to do Next and How to Get Approved

You’re sitting with a life insurance advisor and you apply for approval. After a few days you hear back from that advisor that you weren’t approved and there were no other options they have for you. Don’t fret! Just because one company said no doesn’t mean you can’t be insured at all. Here are some reasons why you might have been denied along with tips to help you move forward and help you get the coverage you need.

  1. Be honest on what medications you’ve been prescribed: Most companies check your Medical Information Bureau (MIB) as a pre check to look at your prescription history and make an initial determination if they could even approve you. Commonly, I have found that when someone doesn’t physically take the medication, but they have been prescribed it, they feel they aren’t taking it. its still in your medical records as being prescribed, therefore all companies will view you as taking said medication. Be honest with your advisor about what you’ve been prescribed. It will be found by the insurance company. 
  2. Ask the company why they denied you: Most times the insurance company will not share this information with the agent, due to HIPAA laws. The company will share this with you, the potential insured. Once you know, you have a better chance of finding a company that approves that medication, or condition. There are dozens of insurance companies in existence. Each of them has their own underwriting standards and approval processes. Hope is not lost yet!
  3. Speak with an independent broker: Let them know you have been denied and why you were denied, in addition to every medication you’ve been prescribed in the past 5 years. This will help the broker be a true advisor and find a company that can approve you for the coverage.
  4. Temper your expectations: It’s understandable that you may have had your eyes set on a specific type of policy or benefit amount. However, if you cannot be approved with that one, move to the next best policy. Some protection is better than no protection whatsoever. Like I tell my clients, I want a Lamborghini, but I can only afford my Ford SUV. Does that mean I am not going to get a car at all? Of course not! I am going to get what I can afford and fits for me. 

If you get denied with life insurance, hope is not lost. There are companies that will approve any condition. You just need to have the right advisor on your side to help you find the best coverage for you. If you’re interested in finding coverage and have been denied in the past, come speak with me for a quick advisor session. Use the quoter to put your information in and I will reach out to you or call me at the number at the top of the page.