What to Do When Your Life Insurance Application Gets Rejected?
Life insurance is a basic necessity that you and your family must be able to get. After all, it is about financially protecting your family if something unfortunate or unprecedented happens. However, there are times when you face obstacles in the form of rejections when you apply for life insurance. It can be worrisome and frustrating to know you can’t have life insurance, but it is not the end.
If you’re wondering what to do if your life insurance gets rejected, you’ve arrived at the right place. In this article, we take you through the different steps you can take if your life insurance is denied.
Get Clarity
Once you receive the “Denied” letter from the insurance company, the first thing you can do is reach out to them for more clarity. This would involve finding out why your insurance application was denied. Their reasons might range anywhere from health issues to criminal offenses committed in the past. Seek an explanation from the company to understand how to overcome the challenge.
Understand and Vet the Facts
Nobody else knows better about your bodily health and history better than you. Once they provide the reasons and the facts behind insurance denial, assess and determine if the facts presented were right and updated. For instance, you might have had high blood pressure a few years ago, but it is normal now. So you can get that fixed in the record.
Another instance could be a minor offense you committed a while ago. However, you have had a clean record since then, so gather proof that can support this.
Life Insurance Denial Attorney
If the facts are correct, but the insurance company is not approving your request, you must hire a life insurance denial attorney. The attorney specializes in the industry and would have had prior experience dealing with cases such as yours. You can use their help to ensure your insurance application denial is contested, which may lead to the approval. On the contrary, what if all the facts are straight and the denial is legally apt? Don’t worry. We’ve got a solution for that as well.
Life Insurance Agent
An independent life insurance agent knows the industry, how the various companies function, and what could be the issues with your application. Since they are aware of the behind-the-scenes activities, they can work around the red flags in your application. Furthermore, they will also help you get options from a wider range of companies and agencies whose policies suit your needs and requirements. This way, you’ll be able to apply to a different company and have a higher chance of getting the life insurance approved.
Work on Yourself
If the reasons and facts are relevant and under your control, begin taking measures to remediate the issues. If your health is poor, start working on it. Establish a routine recommended by a professional and ensure you reach the right metrics to help your insurance application be approved.
If it’s a minor offense, start doing things that prove that you have improved, have a better record, and are eligible for insurance approval. During this time, build your emergency funds and ensure you’re financially stable.
This way, issues like bad credit or bankruptcy are kept from getting in the way.
Wait for a Brief Period
Usually, when your insurance is denied, it is good to wait briefly. This could be because certain criteria don’t match, which could be worked upon. Certain criteria, such as age limits, will require you to wait, and there will be no other option. So, wait if your application is rejected before re-applying, especially if it’s the same company. Consecutive rejections do not reflect well on your record and will further hamper your chances.
Besides these, you can also take other measures, including applying for insurance through your company and applying for simplified life insurance or mortgage life insurance. These will require you to skip several steps in the process but will also involve getting lower payouts. So, understand your scenario and choose the steps accordingly.
