Last Updated: September 2020
If you’ve gone through the process of applying for life insurance and got that frustrating decline letter and phone call, what do you do now?
If you’ve been denied life insurance coverage, should you apply to a different company or just go without life insurance?
We have helped 1000’s of people secure life insurance after they were declined for coverage elsewhere. Below, we will show you your best options after being declined for life insurance.
- Why Do People Get Declined for Life Insurance?
- Option 1: Apply With A Different Life Insurance Company
- Option 2: Try a Graded Death Benefit Life Insurance Policy
- Option 3: Consider Guaranteed Issued Life Insurance
- Option 4: Go Without Life Insurance Coverage
- The Easiest Way to Apply for Life Insurance After Being Declined
Why Do People Get Declined for Life Insurance?
The biggest misconception for high-risk consumers that have been declined for life insurance, is there are no other options out there.
More often than not, the agent you applied with just used the wrong life insurance company.
If you’ve been declined, don’t think that you have to go without life insurance. There are still several options to get you affordable life insurance coverage.
We’ve been helping higher risk consumers who’ve been declined for life insurance since 2005. We’ve seen it all and are high risk life insurance experts.
If you’ve been declined for life insurance, here are your options.
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Option 1: Apply With A Different Life Insurance Company
Don’t let a previous decline for life insurance deter you. If you have your health issues under control and you’re compliant with your doctor’s recommendations, you can likely find a company that will insure you.
Every life insurance company underwrites your health situation differently. Just because one company declined you, doesn’t mean the next company you apply with won’t accept you.
For example, some companies specialize in life insurance for diabetics, while other companies may decline your application if you have diabetes.
Applying with different companies is a great option if you’ve been declined in the past.
An Independent Life Insurance Agent Can Help Find the Best Company for Your Situation
Working with an experienced, independent life insurance agency is important. You need access to all the best life insurance companies for your unique situation. Independent life insurance agents work on behalf of you and not any specific life insurance carrier.
The benefit of working with an independent agent is that we have experience working with dozens of different insurance companies and understand which ones are going to give you the best chance of being approved for coverage.
For example, if you tell us that you need life insurance with a heart condition, we will know which companies will offer you the lowest rates based on our experience.
Fill out the form on this page or give us a call to explain your situation to us.
Option 2: Try a Graded Death Benefit Life Insurance Policy
Graded death benefit life insurance policies don’t require a medical exam. They just have a short application with a series of health questions. These policies are typically best for people who have health problems.
The term “Graded” means there will be a waiting period before the full death benefit is in effect, usually 2-3 years. During the first 2-3 years, if the insured person dies, the life insurance company would refund your premiums + interest, or give you a percentage of the full death benefit. However, after 2 years you’ll have full coverage.
Graded policies are more expensive than traditional policies. So we recommend applying for a traditional policy with a different company before choosing a graded death benefit policy.
- The graded death benefit can come in the form of “graded term life insurance” and “graded whole life insurance”.
- Most people opt for graded whole life insurance since the premiums are promised to remain the same and it builds cash value.
Although the graded term life insurance is a little less expensive, it’s tough to pay that much for life insurance without any guarantees or cash value.
There are dozens of insurers in the business that have “graded” life insurance policies, so you’ll want to compare these rates as well.
However, if you can’t qualify for a graded death benefit policy, you’ll have to look at guaranteed issue life insurance.
Option 3: Consider Guaranteed Issued Life Insurance
This is your last resort to purchase life insurance coverage. Guaranteed issue, or guaranteed acceptance life insurance policies, only require you to be a US Citizen and have an address in the US.
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Here’s an overview of how guaranteed issue policies work:
- There is a 2-3 year waiting period, depending on the company.
- They are more expensive than other policies.
- They have limits on the amount of coverage you can buy, usually around $25,000.
These policies are made for people who need life insurance with cancer or other serious health issues causing them to be declined for other policies. If you can’t afford any of these options, you’ll have to go without coverage.
Option 4: Go Without Life Insurance Coverage
If you absolutely have to go without coverage, you should let your family know so they can prepare to pay down any last debts and be prepared for other final expenses.
It’s a tough conversation, but you don’t want to leave your loved ones with a financial burden without ample notice. That shouldn’t be the last memory they have of you. Let them start preparing.
You can also ask them to help you pay for life insurance.
The Easiest Way to Apply for Life Insurance After Being Declined
We specialize in high-risk life insurance. We have helped thousands of applicants who were declined for life insurance find affordable policies.
Since 2005, we’ve built our own proprietary database of underwriting niches based on past approvals and conversations with underwriters. We know what companies are the most lenient for virtually every health issue. In fact, agents from around the nation call us for our advice on their declines.
On top of that, we offer a free pre-qualification service so you’ll know if you will be approved.
If you’ve been declined for life insurance in the past, fill out our quote tool or give us a call to review your best options for finding an affordable life insurance policy.