Declined for Life Insurance? What You Can Do Next

Being declined for life insurance can feel frustrating and, in many cases, unexpected. It can leave people wondering whether cover will ever be available and whether every insurer will reach the same decision.

The good news is that being refused life insurance by one company does not always mean cover is unavailable. In many cases, it simply means the application was not placed with the right insurer — or at the right time.

Why are Life Insurance Applications Declined?

Medical History

Certain medical conditions can increase risk to a level that insurers are not comfortable with at that point in time. It may be due to multiple conditions which, when combined, have led the insurer to refuse cover.

Timing

In some cases, the issue isn’t the condition itself – but how recent a medical diagnosis, or procedure has been. Insurers can postpone applications following certain medical diagnoses and usually prefer to see a period of stability before considering cover. For Example, someone who has experienced a Heart Attack, may need to wait for at least three months before an application can be considered. Another example would be someone who has recently had bariatric surgery. In these cases, insurers may postpone applications for three to six months.

Severity or Complications

With certain conditions, more severe cases that have a greater impact on lifestyle or life expectancy will be assessed with much more caution.  An example here may be an individual with Diabetes who has experienced complications (Retinopathy, Neuropathy, Nephropathy etc.…). Many insurers may refuse an application because of the additional risk, while others may still be willing to consider cover.

Lifestyle Factors

Factors such as smoking, BMI, or alcohol intake can also influence underwriting decisions – particularly when combined with certain pre-existing medical conditions.

Does Being Declined Mean You Can’t Get Cover?

No — not necessarily.

Different insurers assess risk in different ways. Where one insurer may refuse to offer cover, another may be willing to offer cover with a premium increase. Knowing where to look is key.

Why Outcomes Can Vary Between Insurers

Each insurer has its own risk appetite, underwriting guidelines, and approach to medical conditions. These guidelines also change over time. One year, a company may offer very competitive rates for individuals with higher BMIs and, the next, it may take a much stricter approach.

What You Can Do Next

1. Don’t Reapply Blindly

Submitting multiple applications without understanding the reason for decline can lead to even more frustration. We speak to clients who have almost given up completely because of numerous declined applications.

2. Review the Reason for Decline

On request, insurers will issue a letter explaining the reason behind their decision. This can be useful when you look at the next application.

3. Consider Alternative Approaches

Options may include applying with a different insurer, adjusting cover, or considering alternative products.

4. Seek Specialist Advice

As a specialist brokerage, we can review your circumstances and identify insurers most likely to offer terms. As well as a wealth of knowledge, we have direct access to underwriters and, in many cases, can establish how likely it is that terms will be offered before an application is submitted.

The Bottom Line

Being declined for life insurance can feel like a setback – but it’s not always the end of the road.

If you’ve been declined and want to understand what options may still be available, submit an enquiry or speak to one of our advisers today.