What to do if you’ve been declined life insurance in the past
(Author – Daniel Sharpe-Szunko)
A lot of people come to us after they’ve been declined life insurance previously. Nobody likes to be turned down for anything and life insurance is no exception. It can feel demoralising or even offensive if you have a medical condition and you get told cover isn’t available.
There are several main reasons why you might have been declined for life insurance by an insurer. It’s important to remember that insurers are all different so just because you’ve been told no before, that’s not always the end of the road. Feeling annoyed or frustrated is totally understandable and it’s natural to question whether applying again is worthwhile.
Why have I been declined life insurance?
You could have been refused cover for several reasons which are unfortunately quite common. Most life insurance applications are declined because of medical conditions, occupation or dangerous activities.
If you’ve applied for cover in the past and your application was refused, then it might be because of:
- Insurance advisor might not have the expertise and the skills to find an appropriate or suitable insurer
- Insurance providers have different underwriting philosophies so some may decline cover where others could accept. Your adviser should be able to identify which insurers are best for each situation and persons circumstances
- Medical disclosures might be incorrect or inaccurate so it might be that there was a simple error with submitting your application
- Medical evidence may be requested in some instances which can expose additional elements which can cause concern. It’s important to know what might be on your medical report before applying for cover
- Timing could be wrong so you might have applied when your medical readings were high or not as well controlled. If you’ve made changes to your lifestyle or treatment which has improved your condition then things will have changed
- Smoking is sometimes a red flag with life insurance and especially with certain medical conditions, such as diabetes, cardiovascular and lung disorders. If you quit smoking more than 12 months ago then definitely try again
- Underwriting changes could mean that cover which wasn’t available before has now become available. Underwriting philosophies can and do change so you should keep checking just in case this happens
Does being refused life insurance have any impact on future applications?
You should know that insurers do not share personal information about individuals. The only real reason why being declined cover might have an impact in the future, is if you re-apply to the same provider.
It may just be as simple as you didn’t remember which company had declined you in the past, or you didn’t know who they were. It’s a common and simple mistake so don’t worry if this happens. This happens to lots of people and is certainly not an issue so let someone find the right insurance provider for you.
What are the main medical reasons for declined life insurance?
Some of the main things that could cause a medical decline for a life insurance application are:
- Recent diagnosis such as cancer or heart attack
- Ongoing treatment which includes chemotherapy and radiotherapy
- Combinations of conditions such as Diabetes and Heart Attack
- Undiagnosed conditions where symptoms are identified
- Outstanding investigations, results or surgeries
- Higher than normal results or readings (such as blood sugar, cholesterol or blood pressure)
You should know that there are usually other options and solutions in a lot of these instances so don’t be put off. It might also be a case that cover may not be available now through mainstream insurers but there are other options.
Do life insurance companies share medical information?
The simple answer is no they don’t unless it is agreed by the insurance companies and the applicant. Generally this does not happen more often than not because of the potential issues around data protection and sharing of personal data.
Do I have to pay more for life insurance because I’ve been declined?
Again the answer isn’t necessarily yes and some insurance companies might still offer cover and even be cheaper. Insurance underwriting is a complex calculation which is individual to each company and pricing will vary from one company to another.
If you’ve had a quote from a company in the past then by shopping around and applying to the right insurer, you might still be able to get cover cheaper. Your insurance adviser should help you to find which provider is cheapest and who will accept you.