Life Insurance Coverage Denied: Alternatives and Answers

For many consumers, having life insurance coverage denied is one of the most unnerving experiences possible. It raises a number of questions, many of which have no obvious answers. Applicants may worry about their health, their overall life expectancy, or simply wonder why the insurance company deemed them uninsurable. For consumers who have been denied life insurance, a number of options are still available that may allow them to obtain the coverage they need.

A good first step is to contact the insurance company directly. Coverage may have been denied due to an underwriting mistake or a clerical error; if there was a medical reason for the denial, the insurance company can explain the reasoning behind their decision and afford applicants the opportunity to provide additional information that may result in a more favorable outcome. In some cases, physicians can offer a more comprehensive synopsis of the applicant’s health; this can sometimes shed a new light on existing information and allow approval for life insurance coverage. Patients also have the right to request a copy of their medical records in order to determine possible reasons for the denial of coverage.

Even if the refusal stands, it may still be possible to obtain life insurance coverage. Consumers can apply to other companies that may have different criteria for approval; by widening their search, applicants can often find an insurance company that will approve their life insurance coverage. Group life insurance coverage is an option as well; typically these plans are available through employers and other organizations and have less stringent requirements for approval. Some guarantee coverage for members, while others require a medical questionnaire or certain general examinations. Group life insurance tends to be more expensive due to its inclusive nature; however, it is a good alternative for those who have been refused other coverage. For consumers who have had an application for life insurance coverage denied, some states offer a high-risk insurance pool that offers coverage in these cases. Rates are typically high, but these pools can offer hope to those who have been denied the life insurance coverage they need to ensure their family’s financial well-being even if the worst occurs.