If you’ve been declined life insurance, options can feel limited and you may be worried about what to do next. But there are still options for you…

To explore your life insurance options, especially if you’ve been declined life insurance, give us a call to discuss your options.

I’ve been declined life insurance. Why?

To be accepted for a life assurance policy, insurers will usually want to ask you some questions about your health and your lifestyle.

Sometimes, your answers will lead the insurer to ask for more information. If you can’t (or don’t want to) provide that information, your application will be treated as being withdrawn. If the insurer feels they can’t insure you (either because of the answers you gave on your application form or because of the results of any follow-up tests) your application will be declined.

What factors might have led to me being declined life insurance?

There are two types of factors that tend to influence insurers when they make a decision about your life insurance: medical factors and lifestyle factors.

Medical factors might include:

• High blood sugar levels
• A history of cancer or liver malfunction
• Being obese or overweight
• High cholesterol
• Hepatitis
• Medical issues stemming from alcohol or drug dependency
• Blood or protein in your urine

Lifestyle factors might include:

• Smoking
• Drinking
• Job risk: if, for example, you work as a firefighter or a stuntperson, you’ll be seen as being at considerably higher risk than an accountant
• Participating in extreme sports

If you’ve been declined life insurance already you’re more likely to be declined again. That’s why it’s a good idea to avoid making a flurry of applications one after the other to different insurers, as you could be declined again. The reason for this may be due to medical or lifestyle factors.

Is one negative factor enough to mean I’ll be declined life insurance?

It could be. It’s a matter of scale and severity. A single factor may certainly decrease the amount of cover offered or increase your monthly premiums, even if the insurer agrees to insure you. But just because you have any of the above doesn’t mean you will be refused life insurance.

Generally speaking, the more factors you have and the greater their severity, the greater the likelihood of you being declined life insurance.

What happens if I don’t declare a condition?

You must. If you don’t declare a medical or lifestyle condition that later comes to light, your application may be declined or cancelled. It could also mean any claim after your death can’t be paid out.

Will an insurer tell me why they declined me?

They might do. There’s certainly no harm in asking. They may be able to give you a general idea of the reasons at the very least.

Will every insurer decline me? Should I reapply elsewhere?

Broadly speaking, if you’ve been declined life insurance, options for simply reapplying elsewhere will be slim. Although every insurer will use a slightly different set of criteria, they’ll be sufficiently similar to mean that a ‘no’ from one is likely to mean a ‘no’ from others.

There are, however, exceptions. Some insurers are specialists in certain health conditions and may be able to adopt a more nuanced approach than others. And some insurers may specialise in high risk professions and be able to offer cover where others can’t. You’ll probably pay a higher premium for high risk cover though.

The key to finding the insurers who might say ‘yes’ is to do your research before applying because, as we’ve already mentioned, the more unsuccessful applications you make, the greater the chance that your next application will be unsuccessful too. To explore your options, you can always talk to one of our Protection Advisors via live chat or by phone.

Declined life insurance – what are your options?

There are a few next steps you could take. First, it may be the case that a lower level of cover or a higher monthly premium (or both) could see your application approved. It’s worth having a chat to see if that might be the case.

You could spend a few months working to fix any issues that may be causing a problem and then reapply. If you are able to, for example, lower your weight, your alcohol consumption or your cholesterol level, it could make the difference. You shouldn’t, however, take any steps that may affect your health without first seeking medical advice.

Another option might be to explore whole of life insurance cover. Whole of life cover guarantees to pay out a tax-free lump sum when you die. If you have a pre-existing medical condition you’re more likely to be accepted for whole life cover than for life insurance. You may, however, find the premium is higher or the level of cover lower than would be the case for life insurance, depending on your circumstances.

To explore your life insurance options, especially if you’ve been declined life insurance, talk to us today.