There are a lot of instances when life insurance applications and declined and while the news can be very unsettling at first you must remember that you can still be able to purchase life insurance that too at attractive rates.
Being declined life insurance is not uncommon and it may seem demoralising at first especially if it’s due to a medical condition but there are several reasons why you can be declined life insurance which is unfortunately common but have solutions.
Reasons why insurance applications are denied
There are a lot of reasons why insurance applications can be denied. Some of the common ones are listed below:
- The incompetence of the insurance advisor
- Unique underwriting policy of the insurer
- Error while disclosing your medical information
- Medical documents supported at the time of application may be incorrect
- The timing of the application may be incorrect
- If you smoke or have an unhealthy lifestyle you may be refused insurance
- Changes in the underwriting policy of the insurers
Does a declined insurance application mean I will never be able to purchase insurance?
You must remember that insurance providers do not share the information provided by possible clients at the time of applications, hence, there is still a good chance that if you are refused insurance by one company another insurance provider may still be willing to cover you.
As long as you do not apply to the same insurance company twice you will be able to purchase life insurance cover of your choice provided you rectify the application error you may have made with your first application.
Does a declined life insurance mean I will only be approved insurance at a higher rate of premium?
The answer to this question is not necessarily yes. If there have been mistakes in your application or the mistake was made by the insurance specialist you approached there is a high chance that you will be approved for policies by other providers at cheaper rates. If you were declined insurance because of medical or lifestyle factors, then yes, chances are you will have to pay a non-standard premium for the policy.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00