How To Compare Life Insurance Policies After Being Denied?

Has your recent life insurance application been denied? If so, it’s understandable that you’d be feeling stressed out at the moment. Even though applying for life insurance is easy, you won’t always receive instant approval. Despite these initial setbacks, plenty of life insurance options are available to you. If you need help finding out what your next steps should be, the following guide should give you some helpful tips. 

Find Out Why Your Application Was Denied

Before applying for any more life insurance policies, the first thing you should do is find out why your original application was denied. If you’ve had a previous bankruptcy, an insurance company may use this fact to deny your application. The same is true if you currently suffer from a serious health issue. Knowing why your application was denied should make it easier for you to get the life insurance you need. 

Apply for a Different Policy Type

If the first application you send in is denied because of a health issue that you suffer from, you should consider applying for a different life insurance policy. In fact, there are a couple of different insurance plans that don’t ask you to take a medical exam beforehand. These plans include simplified issue life insurance and guaranteed issue life insurance. 

Simplified Issue

Simplified issue life insurance is a type of life insurance policy with very few health questions and doesn’t require a medical exam. If your previous application was denied because of a minor health issue, this insurance policy might fit your situation. 

However, you may not be approved for this insurance if your medical condition is too severe. One thing to keep in mind before applying for this policy is that your monthly payments will be higher when compared to standard life insurance. Your coverage may also be limited to $500,000.

Guaranteed Issue

Guaranteed issue life insurance is a very small life insurance policy that may be perfect for you if you suffer from a serious health problem. This plan will provide you with coverage of up to $50,000. The main benefit of choosing this plan is that you won’t need to answer medical questions or take a medical exam. 

Consider a Different Life Insurance Company

You may be surprised to find out that not every life insurance company has the same requirements. If an insurer denies your application because of a positive drug test or previous bankruptcy, this is a sign that the insurance company you first applied with had strict requirements. Other insurance companies don’t always take non-medical issues into account, which may allow you to obtain life insurance. 

Check with Your Employer

If you’ve been denied life insurance for any reason, you should check in with your employer. There’s a good chance that the business you work for has group life insurance that you could think about joining. If you decide to apply for group life insurance, you likely won’t need to make monthly payments. You could, however, lose your coverage if you ever lose your job. 

The Bottom Line

Having your insurance application denied doesn’t mean you’re out of options. Once you find out why your application was rejected, you should look into applying for a simplified issue or guaranteed issue policy. You could also consider applying with a completely different insurance provider. Another available option is to check with your employer to see if they have a group life insurance plan that you can join. 

Whether your initial claim was denied or you haven’t applied yet, it’s always best to contact a life insurance agent to learn more about your options.