What can I do if my life insurance application is declined?

Can I change any of the information to get my life insurance application approved?

Change is perhaps the wrong term, but there are some things you can attempt to get a different result.

As we mentioned before, make sure the insurance company has your most up-to-date medical information. They may have made a decision based on old lab results or doctor’s notes. Be diligent in ensuring they have recent information to make their decision.

Next, if you have time, use it. If you don’t need to be insured this minute, and you feel some of the negative medical results or questions can be improved, then take the steps to create a plan and make the necessary changes. 

For instance, if an insurance provider recommends a loss of weight or a reduction in your cholesterol level, you can implement a plan to change these factors through medication, diet, exercise, or other methods and reapply when you get improved results. This logic can apply to behavioural factors as well, whether finding the willpower to stop smoking or changing your mind on travelling to active warzones.

Ok, I’ve accepted that my insurance application is declined. What are my options?

You are not out of luck, there are still many viable options if you are declined for traditional life insurance coverage.

Try another provider

We know we sounded a little alarmist before with the MIB, but some insurance companies have more flexible underwriting than others. In many cases, certain companies are more flexible on health conditions, while others look at lifestyle conditions more favourably. Just because you were declined by one company doesn’t mean the rest will follow. Though remember, because of your previous application, another insurance company will look at the new one with a finer toothed comb. 

Simplified life insurance. Depending on what triggered your initial decline, you can consider simplified life insurance, sometimes called simplified issue. You’ll answer a short application to see if you are eligible for life insurance without a medical exam. If you pass, expect higher premiums as an insurance company takes on more risk with these types of policies.

Guaranteed life insurance. This option is incredibly simple; there are no medical exams or health questions, though the coverage usually tops out at $50,000. The premiums are much higher as this is a large risk for an insurance company to undertake, and there is an exclusion period when claims are not accepted – typically within the first 2 years of the policy.

Read more about simplified vs guaranteed life insurance.

Group life insurance

If you can get life insurance coverage through work or a professional association, take advantage of it. While the death benefit might not compare to what you had hoped to get, it’s better than no coverage at all. Additionally, some group benefit plans have options for continuing coverage if you make a career change – with some exceptions for underwriting.

Find a life insurance advisor you can trust

All of these options are at your disposal with the help of a licensed insurance advisor. If possible, find an experienced advisor who is knowledgeable about life insurance and has access to multiple brands and products.

With an insurance advocate by your side, you can always get a sober second opinion on your potential choices. Just keep in mind that a second opinion is a viable option – but only if the reason for your initial denial is one that another insurance carrier may accept. 

Take for instance an earlier example. Let’s say you are denied coverage due to elevated cholesterol levels, but there is another insurance provider that would accept your application if you divulged the fact that you manage the condition effectively with medication. While you may not know this company existed by yourself, an experienced insurance advisor brings that knowledge to the table.

How much life insurance do I need?

While it may seem counter-intuitive for an insurance broker to tell you to buy less insurance, we would rather see you with some coverage than none at all. Everyone wants to provide as much for their loved ones as possible in the unfortunate event of their passing. If you’ve been denied coverage for a larger amount, however, you may want to be realistic about how much life insurance you truly need. 

Try playing with the numbers in our life insurance needs calculator and see how much coverage you truly need. There may be a case where you are approved for a lower amount, or realize you were seeking too much coverage for your current needs.

Why is working with PolicyAdvisor the smart choice if my life insurance application is denied?

Finding life insurance coverage is daunting – and that’s without the added stress of a potentially rejected application. Which life insurance carrier do you choose? Should you obtain a private plan or obtain one through your employer? What medical information do you need to provide to obtain life insurance? Will your health issues be a cause for concern? Lead to higher rates? Or, worse, denial of coverage?

As exhausting as these questions seem – you don’t have to answer them alone. PolicyAdvisor’s life insurance advisors have experience with every potential situation a Canadian may have gone through while searching for life insurance. We put that experience to work helping anyone with questions and aspirations to get life insurance coverage – no matter what their circumstances. 

PolicyAdvisor also has access to specialized insurers for high-risk cases; by providing them with detailed information about your specific situation, they can work to find you a better match if your initial application is rejected.

If you’ve been declined for life insurance coverage, it is not the end of the line. Get in contact with one of our insurance advisors and we’ll help you weigh your options.