Declined for Life Insurance – What To Do Now? 2024 Update

While being declined for life insurance is never a good experience, it is not a dead end when securing financial protection for your family.

If you had been “rated” or “declined” for coverage in the past, it doesn’t mean that you have to live without life insurance in the future. It just means that you probably have applied to the wrong company.

Life insurance companies use underwriting to determine how much your premium will be and also if you will qualify for coverage. Every life insurance company has different underwriting guidelines for every health condition. Because Company “A” has declined, you don’t mean the next company won’t approve your application.

The biggest misconception for those who have declined life insurance in the past is that there are no other options for them.

The good news is that you can still get life insurance even with a past declined life insurance application.

This article will discuss why an insurance provider rejects an applicant and what you can do to get coverage.

FOR EASIER NAVIGATION:

• Different Outcomes of Life Insurance Application
• Reasons You’ll Get Declined For Life Insurance
• What To Do After You Have Been Declined For Life Insurance
• What Are Your Options For Life Insurance Coverage
• Getting Approved For Affordable Life Insurance
• What’s Your Next Step If You’ve Been Declined For Life Insurance
• How Can Funeral Funds Help Me?
• Additional Questions & Answers On Declined For Life Insurance

Different Outcomes Of Life Insurance Application

After your life insurance application has gone through the life insurance company underwriting process, the life insurance company will decide on your approval in 1 of 4 ways:

1. Approved as applied – this is the best application outcome. Your application is approved at the same amount of premium you were initially quoted.
   
2. Approved other than applied – you are approved for coverage but at a different rate from what you applied for. The rate or premium amount could be better, but it is usually worse than expected. You will need to approve the new premium amount before they finally issue the policy.
   
   There are many reasons why your approval decision is different than what was applied for. The result of your medical exam may cause you to be rated, or you may have neglected to give relevant information discovered during underwriting.
   
3. Postponed – typically happens if a disease diagnosis or treatment is very recent, and the insurer is unwilling to gamble on a medical issue reoccurring. Most insurance companies will tell you to apply again 6 months to 5 years after treatment. If your application is postponed, expect to get detailed information on how to get coverage in the future.
   
4. Declined – this is the worst outcome. The insurance provider you applied for isn’t willing to give you any coverage. Read on to know why life insurance companies will decline your application.

Reasons You’ll Get Declined For Life Insurance

Here are the reasons why you would be declined for life insurance:

#1. An elevated level of Cholesterol, Lipids, and Triglycerides

Your application for life insurance may be denied if you have elevated cholesterol levels. In some cases, it may not be a reason for the decline, but being approved other than applied for is because you are at higher risk for heart disease and stroke.

#2. Elevated Glucose or Blood Sugar Level

High glucose or blood sugar level can indicate diabetes, which is a cause of the decline. To understand this, we have put a separate article on diabetes. If you have diabetes, please read our article Diabetic and Diabetes burial insurance eligibility.

A high blood sugar level is often not discovered by applicants until they undergo a medical exam. High glucose or blood sugar levels usually have no noticeable physical symptoms.

#3. Overweight or Obese

Height to-weight ratio is one of the determining factors in getting approved at the best rate possible. Additionally, it also indicates your general health and fitness level.

Being overweight or obese may not always cause a decline; it usually results in higher premiums. But, a decline is most likely the outcome if it exists with other health risks.

Being overweight or obese is a red flag for life insurance companies because it can often lead to severe health complications, specifically cardiovascular issues.

#4. Elevated Liver Function

Life insurance companies may deny your application if they find out you have a high liver function. This condition can indicate inflammation or damage to the liver cells. It can be mild or temporary, but sometimes it can mean more severe liver problems.

If you have a mild liver function and are denied life insurance, try to reapply with another insurance carrier or get a new medical exam to get a better rate.

#5. Blood or protein in the urine

From the point of view of the insurance companies, the existence of blood or protein in your urine could indicate kidney disease. This is why life insurance companies would typically reject a life insurance application.

#6. Hepatitis

If you just discovered that you have any form of Hepatitis on the life insurance medical exam, it would mean a decline. However, Hepatitis B or C that has been diagnosed and treated will not cause you denial once your treatment is complete.

To get life insurance coverage, you must first begin treatment for Hepatitis. The treatment regimen can make you qualify for life insurance approval later.

#7. A History of Cancer

A history of cancer puts you in a high-risk category in life insurance. Your life insurance approval or decline will depend on your cancer type and how long you have been in remission.

Skin cancer is viewed as a less severe form of cancer that life insurance companies typically approve. The more severe types of cancer, like breast cancer and lung cancer, may cause a decline.

#8. HIV or AIDS

Even though survival rates for HIV or AIDS have improved over the years, some life insurance companies still consider them high-risk and may deny your application. We know of a few life insurance companies that look favorably to HIV patients, which are the companies you need to apply to.

#9. Oxygen Use

Every single life insurance company will inquire about oxygen use. There is only one scenario where you can secure life insurance using oxygen. That one exemption is sleep apnea. If you use oxygen for sleep apnea, your life insurance application will be declined. Oxygen use is considered an uninsurable condition, and the only option for life insurance coverage is by taking a guaranteed issue life insurance.

#10. Need assistance with Activities of Daily Living

Activities of daily living are classified as eating, bathing, dressing, toileting, and transferring. If you need assistance with these, you will be automatically declined for traditional life insurance. Almost every life insurance company will not issue coverage to anyone needing ADLs help. You will need to buy guaranteed issue life insurance if you need life insurance coverage if this applies to you.

#11. Positive Alcohol Marker

Having a few drinks will not create a positive alcohol marker. A positive alcohol marker is a red flag for life insurance because it indicates elevated liver functions from alcoholism. A positive alcohol marker is the easiest way to receive a life insurance rejection. Alcohol abuse can damage health and potentially make the applicant engage in life-threatening activities.

You may need to delay your application until you entirely stop drinking and remain sober for some time before applying.

#13 Hazardous Occupations

Some occupations are more dangerous than others. Life insurance companies are reluctant to approve coverage if you work in a hazardous trade. If you work in a dangerous occupation, don’t be surprised if your life insurance application is denied.

The 10 Deadliest Jobs, according to Forbes Magazine, is as follows:

1. Airline pilots and flight engineers
2. Drivers and truck drivers
3. Construction laborers
4. Fishers and related fishing workers
5. Logging workers
6. Roofers
7. Farmers, ranchers, and other agricultural managers
8. Structural iron and steelworkers
9. Electrical power-line installers and repairmen
10. Refuse and recyclable material collectors

#14. Hazardous Hobbies or Extra-Curricular Activities

For some people, it’s not their job that gets them in trouble with life insurance companies, but their hobbies or extra-curricular activities. Just as some jobs are more hazardous than others, some hobbies are considered dangerous too because they can lead to premature death.

Some common hazardous hobbies include recreational flying, skydiving, scuba diving, bungee jumping, and base jumping. If you participate in any of these, you may find it difficult to get life insurance.

#15. Your Driving Record

A motor vehicle accident is one of a healthy individual’s leading causes of death. A history of multiple tickets, vehicular accidents, and driving under the influence (DUI) could lead some life insurance companies to deny your application or postpone your life insurance application until you can demonstrate a reasonably clean driving history.

#16. Income Limitations

Some insurance companies refuse to write a life insurance policy for people whose household income is less than a certain level. That level may vary among life insurance companies. They give this restriction to avoid insuring people below a certain income level to reduce their own costs.

Another reason why lower income can prevent your approval is that insurance companies have to justify your policy. If you ask for a million-dollar life insurance policy, but you have no assets and hardly make $20,000 a year, your intent may be dubious, and there is a good chance that you will be denied coverage.

#17. Previous Declines

Insurance companies subscribe to the Medical Information Bureau (MIB), which shares information about prior life insurance approvals and denials on their life insurance applications. MIB reports protecting the life insurance companies from applicants who lie about their current medical conditions.

Previous declines in MIB reports will be a problem for those who previously applied for life insurance for a medical reason that may no longer exist. However, just because you have been denied in the past doesn’t mean other life insurance companies can never approve you for life insurance.

What To Do After You Have Been Declined For Life Insurance

If you have been rejected for life insurance coverage recently, you must know why you had been declined to avoid more life insurance rejections in the future.

Here’s what you can do after your application for life insurance has been declined:
1. Know the reason for your denial

If you have been denied life insurance coverage, it’s your right to know why you have declined coverage. You should receive a letter from the insurance company why they decline your application. If they fail to send this to you, you can write a written request asking for detailed information about your rejection.

As soon as you get the facts of your decline, contact Funeral Funds to discuss your other options for coverage.

2. Ask for your test results

If you’ve been declined because of your medical exam results, get copies of your medical record used by the life insurance company in rejecting your application.

Compare your medical records and check with your doctor for accuracy. If there are any mistakes, you’ll need to ensure that the information is corrected because it will appear in the MIB or life insurance application database.

You will need your medical exam results to know why your denial is.

This information will help you avoid repeated denial in the future and determine your next course of action.

3. Work with an independent life insurance agency

You may not get the right company suited for your needs even with proper research. Every life insurance carrier has different underwriting guidelines for various health conditions.

Only an independent life insurance agency will know this, and they can place your application with the company that will likely approve it.

A highly experienced life insurance agency can assess your information and find you the best plan at the lowest rate. Working with an independent life insurance agency like Funeral Funds will save you time and money. Our services are free and won’t cost you a cent more than if you applied to a life insurance company on your own.

4. Appeal your case

You can appeal if you disagree with the life insurance company’s decision regarding your application.

For instance, if you were denied coverage for having proteinuria or protein in the urine, extreme physical exercise is the cause. You can follow up with an exam from your primary care physician. Ask your doctor to write a letter and attach the test results to show otherwise.

What Are Your Options For Life Insurance Coverage

If you’ve been declined for life insurance coverage, here are your options:

#1. Apply with a different company

Don’t let a previous decline prevent you from getting life insurance. If Company A has declined you, it doesn’t mean that Company B will reject your application. Different companies have different underwriting criteria. The secret is, knowing the companies that look at your condition favorably.

Working with an independent life insurance agency like Funeral Funds that have access to high-risk life insurance companies can get you approved for life insurance. We work with multiple life insurance companies, and we understand which one will give you the best chance of approval.

#2. Try No-exam Policies

If your health issue is not under control and you’re not compliant with your doctor’s recommendation, you’ll have to opt for a no-exam policy.  No exam policy would be one of your best options if you were denied life insurance in the past.

Simplified Issue Life Insurance

Simplified issue policies don’t require a medical exam. You only need to answer a series of health questions. These health questions are very lenient and accept many health conditions.

Simplified issue life insurance has a level death benefit. If you were approved for this type of policy, you are immediately covered from the first day. Your beneficiaries will receive 100% of your death benefit when you pass away for whatever reason.

Graded Death Benefit Policy

If you don’t qualify for simplified issue life insurance, a graded death benefit is your next best option. Graded death benefit has two to three years before the death benefit kicks in.

During the waiting period, if you suddenly pass away – the life insurance company would only refund your premiums plus interest, or they would give a percentage of your death benefit.

If you pass away during the first year, the company will pay your beneficiary 40% of the death benefit. The death benefit payout will be 70% if you die in the second year. After the waiting period, your beneficiary would receive 100% of the death benefit.

Guaranteed Issue Life Insurance

Guaranteed issue burial insurance is your last option for purchasing life insurance coverage. Guaranteed issue final expense insurance does not have a medical exam, and you don’t have to answer health questions either.

Guaranteed acceptance life insurance may be your best option if you have a severe medical condition. Your approval is secured regardless of your medical condition. If you are a U.S citizen and you fall under the age requirement, you can qualify for this policy.

This type of policy works just like a graded death benefit policy. It has a two-year waiting period before you are fully covered for the natural cause of death.

If you die within the waiting period, your beneficiary will only receive the return of premium plus interest, commonly 10%. But, if you die from an accident, 100% of the death benefit will be available to your beneficiaries.

Getting Approved For Affordable Life Insurance

Aside from working with an independent life insurance agency to help you get approved for coverage, you can do a couple of things to get affordable life insurance and increase your chances of getting covered.

You could lower your life insurance premium if you:

• Quit using tobacco products – non-smokers have lower rates compared with smokers. Smokers pay up to three times the rate of a non-smoker.
• Lose weight – losing weight often means lower blood pressure and cholesterol levels, decreasing your chances of developing chronic diseases.
• Reduce alcohol intake – drinking less alcohol or completely stopping will make less of a risk to the insurer, giving you lower premiums.
• Improve your driving – DWIs or DUIs can cause life insurance companies to give you a higher rating or decline your application.
• Switching insurers – you may be able to get better rates if you switch to another life insurance company that offers the same benefits at lower rates.

What’s Your Next Step If You’ve Been Declined For Life Insurance?

Life insurance companies will know if you applied with other companies and had an application that had been denied in the past. Records of approval and denials are recorded in your Medical Information Bureau.

Life insurance companies don’t like many declines, which could hurt your future chances with a company willing to take your risk.

If you’ve declined life insurance coverage in the past for whatever reason, then call us.

You may be frustrated with being declined for coverage, but remember you have options. We will help you find the life insurance company to take your risk and offer you coverage.

How Can Funeral Funds Help Me?

Finding a policy with a history of decline needn’t be frustrating; working with an independent agency like Funeral Funds will make the process easier and quicker.

If you have been declined life insurance, let us help you; we will work with you side by side to find a plan that fits your needs.

We will work with you every step to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time searching for multiple insurance companies anymore because we will do the dirty work for you.

We will shop your case at different insurance carriers and get you the best price.

We work with many A+ rated insurance carriers that specialize in covering high-risk clients like you. We will search all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.

We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for funeral insurance, burial insurance, or life insurance, we can help.

Fill out our quote form on this page or call us at (888) 862-9456, and we can give you an accurate quote.

Additional Questions & Answers On Declined For Life Insurance

Can you get life insurance if you have been declined in the past?

Yes, you can get life insurance if you have been declined in the past. Many life insurance companies offer policies to people who other companies have declined. If you have been declined life insurance, it is important to work with a qualified insurance agent who can help you find the right policy for your needs.

What can cause life insurance to be denied?

There are several reasons why life insurance companies may deny coverage to an applicant. Some of the most common reasons include a history of smoking, obesity, diabetes, renal failure, cancer, dialysis, oxygen use, and a history of heart disease.

What does declined insurance mean?

When an insurance company denies coverage to an applicant, it is called declined insurance.

What are the consequences of being declined for life insurance?

The consequences of being declined for life insurance can be severe. If you are declined for life insurance, it may be difficult or impossible to get coverage in the future. This can significantly impact your ability to get life insurance coverage when you need it.

What percentage of life insurance applications are denied?

While the exact percentage of life insurance applications denied is unknown, it is estimated that a small minority of applicants are declined for coverage.

What can I do if I am declined for life insurance?

If you are declined for life insurance, you can do a few things. First, you can work with a qualified insurance agent to find a policy that meets your needs. Second, you can appeal the decision of the insurance company. Third, you can look for alternative types of coverage, such as burial insurance.

How long does declined insurance stay on record?

There is no set time limit for how long declined insurance stays on the record. However, many insurance companies will only consider an applicant’s health history for many years.

Can insurance companies refuse to insure you?

Yes, insurance companies can refuse to insure you. However, there are laws in place that protect consumers from being denied coverage for certain reasons.

Does canceling insurance affect credit rating?

Canceling insurance does not affect credit rating.

What are the chances of getting life insurance after being declined?

The chances of getting life insurance after being declined vary depending on the reason for the decline. If you are declined for health reasons, you may need to apply for another type of policy.

Can you get life insurance if you have been denied?

Yes, you can get life insurance if you have been denied in the past. Many life insurance companies offer policies to people who other companies have declined. If you have been denied life insurance, it is important to work with a qualified insurance agent who can help you find the right policy for your needs.

Can insurance company deny renewal?

Yes, insurance companies can deny renewal. However, there are laws in place that protect consumers from being denied coverage for certain reasons.

Can an insurance company refuse to quote?

No, insurance companies cannot refuse to quote. They are required by law to provide a quote to any consumer who requests one.

Can sick person get life insurance if they have been denied in the past?

Yes, a sick person can get life insurance if they have been denied in the past. Many life insurance companies offer policies to people who other companies have declined. If you have been denied life insurance, it is important to work with a qualified insurance agent who can help you find the right policy for your needs.

Does BMI affect life insurance approval?

Yes, BMI does affect life insurance approval. Many insurance companies use height and weight charts to help determine rates and eligibility for coverage.

Can you be denied life insurance for a pre-existing condition?

Yes, you can be denied life insurance for a pre-existing condition. It is best to work with a qualified life insurance agent who knows the different companies and their underwriting requirements.

I was denied life insurance. What are my options?

If you are denied life insurance, you have a few options. You can work with a qualified insurance agent to find a policy that meets your needs. You can look for alternative types of coverage, such as burial, funeral, or final expense insurance.

What can make someone uninsurable?

There are a few things that can make someone uninsurable. These include terminal illnesses, severe health conditions, and being too old or young.

What is the best life insurance for someone who has been denied?

The best life insurance for someone who has been denied varies depending on the person’s needs. It is best to work with a qualified life insurance agent at Funeral Funds to find the right policy for your needs.

How do you fight life insurance denial?

If you are denied life insurance, you have a few options. You can work with a qualified insurance agent to find a policy that meets your needs. You can look for alternative types of coverage, such as burial, funeral, or final expense insurance. You can also appeal the decision to the insurance company.

What are the chances of getting life insurance after being declined for a pre-existing condition?

After being declined for a pre-existing condition, getting life insurance varies depending on the medical or health condition. If you are declined for health reasons, you may need to apply for a graded benefit plan or a guaranteed issue policy.

If I am declined for life insurance, can I reapply?

Yes, you can reapply for life insurance if you are declined. However, working with a qualified insurance agent is important to find the right policy for your needs.

Do you have to declare canceled insurance?

Some insurance companies will ask if you have had any policies canceled in the past, and some will not.

Do insurance companies do credit checks?

Credit checks are not performed for final expense life insurance, but other policies may require a credit check under specific circumstances.

What are the consequences of not declaring pre-existing medical conditions?

The insurance company may deny your claim or refuse to pay benefits if you do not declare a pre-existing medical condition. In some cases, the policy may be canceled. It is important to be honest when applying for life insurance and to disclose all medical conditions.

How long does a declined life insurance application stay on record?

A declined life insurance application may stay on your record for up to five years. Insurance companies can often access this information when you apply for coverage.

Why would an insurance company not renew my policy?

There are a few reasons why an insurance company may not renew your policy. These include it being a tern life insurance policy, non-payment of premiums, undisclosed health issues, or changes in lifestyle choices with plans that must be prequalified at set time intervals.

What circumstances would make an insurer refuse to provide insurance cover?

A few circumstances would make an insurer refuse to provide insurance cover. These include health conditions, lifestyle choices, and terminal illnesses.

Can you be denied insurance because of your weight?

Yes, if you apply for the wrong insurance company. Some companies have weight limits for their life insurance policies. However, many companies do not have weight limits. Working with a qualified insurance agent is important to find the right policy for your needs.

What types of risks are uninsurable?

There are a few types of risks that are uninsurable. These include health conditions, lifestyle choices, and employment history.

Is it possible to be denied life insurance after being approved?

Yes, it is possible to be denied life insurance after being approved if you have misrepresented your information on the application. The insurance company can then deny your claim. This is why it’s important to be honest when applying for life insurance and to disclose all medical conditions.

Can people be uninsurable?

There are a few people who may be uninsurable. These include those with health conditions, lifestyle choices, and significant health issues or terminal illnesses.

What does it mean to be uninsurable?

To be uninsurable means no life insurance company will accept you as a client. This can be for health reasons, lifestyle choices, or life-threatening illnesses.

What are the odds of getting life insurance after being declined?

The odds of getting life insurance after being declined depends on the reason for the decline. If you are declined for health reasons, you may need to apply for a graded benefit plan or a guaranteed issue policy.

Why would an insurance company refuse to insure you?

There are a few reasons why an insurance company may refuse to insure you. These include medical conditions, lifestyle choices, and any severe health issues.

What do I do if my life insurance application is declined?

If your life insurance application is declined, you may need to work with a qualified life insurance agent who can shop your case with a different insurance company.

How do you fight life insurance denial?

If you are denied life insurance, you can appeal the decision. You will need to provide additional information to the insurance company.

How often is life insurance denied?

Life insurance can be denied up to about 20 percent of the time, depending on an applicant’s age and health.

What are the reasons would life insurance be denied?

There are a few reasons why an insurance company may deny your life insurance application. These include medical conditions, medications, and any past or current health problems.

What are some of the common reasons for denial?

Common reasons for denial include poor health, life-threatening illnesses, and improper medications.

What are some tips for getting life insurance if you have been declined?

If you have been declined for life insurance in the past, you can do a few things to increase your chances of getting coverage. First, you can work with a qualified insurance agent to help you find the right policy for your needs. Second, you can appeal the decision of the insurance company. Third, you can look for alternative types of coverage, such as burial insurance.