Why was I declined for life insurance?
If you were recently declined for life insurance the first thing you need to find out is why? Perhaps, you already have an idea. Maybe it was due to a pre-existing medical condition such as diabetes, high blood pressure or cancer history.
Or, perhaps it was something found in your medical records or recent lab tests that you were unaware of. Either way, it is best to find out what the reason was. This will make it easier to see if other coverage is aviaalble elsewhere.
The company you applied to must release the reason for your declination. They typically will ask you to sign a request to release this information to your personal physician. You can then make an appointment to discuss with your physician the reason for the declination.
My doctor says I am fine
Oftentimes when someone gets declined for life insurance they immediately say, but my doctor says I am fine. And this sometimes can cause an issue because doctors and life insurance underwriters are not working on the same script.
A doctor’s job is to treat any conditions and advise the patient as clearly as possible about their future health. Whereas, an underwriters job for a life insurance company is to determine the risk of future mortality based on the information they have been provided.
Unfortunately, sometimes these differences of opinion do not mesh and can sometimes lead to misunderstanding of the life insurance process.
Work with an expert
When it comes to underwriting a life insurance policy expertise matters. Especially if you are dealing with a situation that happens to involve pre-existing medical conditions, high risk hobbies, etc.
In the life insurance arena many life insurance companies are not specialists. In other words they are generalists. This means they do not specialize in underwriting certain medical conditions like heart disease, crohn’s disease, etc.
Therefore it is imperative that you only work with an agent who is independent and who works with carriers that specialize in underwriting special risk conditions.
Next step after you have been declined for life insurance
Once you have found out the reason for being declined for life insurance and have located an expert agent make sure you have had any needed medical tests done. Be sure to stay on top of your medications. Underwriters do not like to see cases where people start and stop medications.
You do not want to give the next insurance carrier a reason to postpone or decline a new application.
Tell your agent who you have applied to in the past and the outcome of those applications. Let your agent know any details of recent testing, lab studies, etc. that could affect the outcome of your application.
Let the agent do the heavy lifting
Once you have discussed your situation with your agent the next step is for your agent to shop the case. To shop a case after someone has been declined for coverage takes a bit of skill. You want to keep your name out of the medical information bureau file as much as possible. The MIB file is a clearinghouse of sorts that shows who you have applied to and any adverse outcomes.
Once the agent has the details of your situation they will then call and speak directly to underwriting life insurance carriers that specifically specialize in underwriting your particular situation.
Your agent would speak to all carriers and get tentative offers for coverage if available. Once all the tentative offers for coverage are found the insured would then decide which offer and which company to apply to. By using this process you are not wasting your time applying to different companies.
You will only receive viable offers from companies that have already tentatively reviewed your medical history and are aware of your situation.
This process keeps you from being declined for life insurance by several companies.
Conclusion-
If you are in a situation where you have been declined life insurance or are worried you might be declined for coverage, call and speak to an expert agent who specializes in these situations. You can reach us a at 678-207-8160 or mike@specialriskterm.com
