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February 6, 2015

What to Do if Your Life Insurance Application is Denied

Life Insurance FormYou made the decision to purchase life insurance because you know it is the responsible thing to do. Your family depends on you for support and you want the assurance that they can survive without your income should you pass away unexpectedly. Unfortunately, having the desire to provide life insurance doesn’t mean that every company you apply to will approve your application. Some of the most common reasons for denial include:

  • Elevated blood sugar levels or an actual diagnosis of diabetes
  • High cholesterol
  • Elevated liver function, which may also show high levels of alcohol in the system
  • Protein or blood in the urine, which may indicate kidney disease
  • Being overweight or obese
  • Several recent incidents on your motor vehicle report
  • One or more other life insurance companies has already denied you

While receiving a denial is disappointing, it doesn’t mean that you can’t get life insurance anywhere else. Keep looking until you find an agency that is willing to work with your health limitations. You will likely pay a higher premium, but most people find the added cost worth it. You can always request to have your policy underwritten again if or when your health condition improves.

Consider a Graded or Guaranteed Life Insurance Policy

A graded or guaranteed policy is another option for people who have been denied coverage for a standard, term or whole life insurance policy. Because these types of policies do not require a medical exam, they are much easier to get. You just answer approximately 10 health questions. With the exception of people undergoing long-term procedures like chemotherapy, everyone is approved.

Graded policies pay for limited coverage on a sliding scale basis as the policy matures. This generally takes two to three years. Your beneficiaries are entitled to a percentage of the policy total until that time. If you don’t feel this provides adequate coverage, you can take out several graded or guaranteed policies at the same time.

Your independent insurance agent can help you find the right coverage so you can rest assured knowing that your family is protected, come what may.

Protect your family’s best interests. Call Cloverleaf Insurance at (636) 928-1373 for more information on Missouri life insurance.

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