Your life insurance application was declined, what do you do now? Don’t panic because you have some options!
Thousands of people submit a life insurance applications every year. Approximately 14 percent of these life insurance applications are declined for one reason or another. In this blog post we will go over what the best life insurance companies look for in an application.
After you read the article you will be able to pinpoint any potential problems you may believe you have before you apply. Always keep in mind that if one company declines you. Any company that you decide to re-apply will have a record of the previous application. Your agent can help you re-apply and try to prevent you from experiencing this worrisome event again.
Most applications declined are due to not pre-screening medical conditions or hazardous sports or occupations
Many times applicants want to dive in and apply with a company that sounds like a good choice and is well known. Although this sounds like a logical move it is not always your best option to say the least.
All companies underwrite their applications differently and and use different forms of criteria to produce the rates they will offer the applicant.
Some common reasons why your life insurance application could be declined
- Previous declines – If you initially have applied and your life insurance application was declined. The next company that you apply with will know all about it. The life insurance companies have a database that they use to record applications that were submitted.
- Cancer or heart disease – Cancer and heart disease has always been a disease that takes away many people each year. A lot will depend on exactly what type of cancer you have and what your doctor is doing about it. The more severe it is such as breast cancer and pancreatic cancer, the greater the concerns. Less serious forms of cancer such as some forms of skin cancer are normally more acceptable. If you have a history of cancer or heart disease with your parents or siblings, this can also effect your application.
- Your driving record also represents a concern – If your MVR motor vehicle report contains a lot of speeding tickets there could be a problem. More serious violations such as drag racing on the street can put the hurt on you. Violations such as DWI/DWI violations can cause a very great concern and a decline. Auto accidents among young drivers are a leading cause of death. Working hard to keep a safe and clean driving record will help allow you to eliminate these complications.
- Use of narcotics – The use of any type of drugs or narcotics can cause a real mess and instantly trigger a decline on a life insurance application. There are times when using Marijuana is acceptable but chemical type narcotics are out of the question. When it comes to drug use, they have to be officially prescribed from your family doctor.
- Dangerous occupations – The type of an occupation you have can either make or break a life insurance application. If you have any one of these hazardous occupations, pay close attention.
- Roofers, especially hot tar roofers
- Airplane pilots and flight engineers
- Loggers and lumberjacks
- Structural iron and steel workers
- Commercial fisherman
- Construction laborers
- Farmers and ranchers
- Truck drivers
- Electrical power line installers and repairman
- Refuse and recyclable material collectors
Medical condition that seriously effect applications
- Aids or HIV – Having HIV or Aids can trigger a decline on your life insurance application real quick. There are some high risk companies you can apply with and possibly be accepted depending on how advanced your condition is.
- Elevated cholesterol & triglycerides – The main focus will not be necessarily high cholesterol, but rather the combination of high LDL cholesterol, and low HDL cholesterol. The combination puts you at a high risk for heart disease and strokes down the road. The companies pay close attention to these reading after your blood test.
- Heavy use of Alcohol – This has minimal bearing on periodic casual drinking. If you have a positive marker indicating the your liver functions are high there could be a problem. A life insurance company is normally only concerned with applicants that drink large amounts of alcohol on a regular basis.
- Hepatitis – Hepatitis B and C that has already been diagnosed and treated is typically not a reason for denial, Especially once treatment is complete. But it can be an issue with a life insurance application if the condition has only been recently discovered, or if it is revealed by the life insurance medical exam itself. The severity of Hepatitis creates a large deciding factor on your application.
- High levels of glucose – High levels of glucose otherwise known as blood sugar can be an indication of diabetes. This opens up the possibility for a host of other medical outcomes that many life insurance companies prefer to avoid. Diabetes can create many new health problems and diseases. The condition can rapidly advance.
- Income limitations – Some life insurance companies won’t accept a life insurance application for someone whose income is below a certain level. That level will vary between insurance companies. The reason that they impose this restriction is that many of these people will become more likely to commit suicide. This happens when income levels hit rock bottom for extended periods of time.
- Elevated liver functions – Elevated liver functions can indicate inflammation or severe damage to the liver cells. This can cause the cells to leak above normal levels of certain body chemicals back into the bloodstream. Most typically, the elevation is mild, and the condition is temporary. But sometimes it can be an indication of more serious liver problems, and that’s what concerns life insurance companies. Life insurance companies always consider a condition that could become more serious in time.
Purchasing life insurance without a medical exam
Life insurance with no medical exam may be just the ticket for you if you have health conditions. No medical exam life insurance can be approved within 24-48 hours. Many times it may cost more but it very well may save you money in the long run. These products are usually term life insurance plan designs that don’t require a medical exam.
What to do if your application is declined
Contact an experienced independent agent (like us) to help you. You are going to need to find out exactly why your life insurance application was declined in the first place. Once we know this, we can help you get prepared to re-apply with with a life insurance company that will give you the best chance on being approved. We work with over 40 highly rated life insurance companies that offer the most competitive rates and plan designs. The first task would be to run a simple medical pre-screen to see what kind of hurdles we have if any. If you have an application declined recently, you will receive a letter in the mail stating why.
Our final word
Having your life insurance application declined is definitely a bad experience for anyone. It gives you that feeling that your not wanted. Many times there is a simple solution to your problem. Grab the telephone and give us a call so we can help you get pointed in the right direction. We have helped many people submit a new application and get approved successfully with a different life insurance company. We have over 25 years helping people purchased life insurance.
All the best,
You can set up a time to go over all your questions with no cost or obligation 7 days a week.