Guide
Denied? Here's what comes next.
Being declined for life insurance is not the end. You still have options, and you may be able to get approved by a different carrier. Understanding why you were declined is the first step toward finding coverage.
Why You Were Declined
Common reasons for declination.
Medical Conditions
Advanced heart disease, recent cancer, severe COPD, kidney failure, or other serious conditions. What one carrier declines, another may accept with a table rating.
Lab Results
Abnormal findings from the paramed exam: high blood pressure, elevated A1C, abnormal liver function, or cholesterol outside acceptable ranges.
Lifestyle Factors
DUI history, hazardous occupations or hobbies, drug use, or criminal history. Some carriers are more flexible than others on these factors.
Mental Health
Recent psychiatric hospitalizations or unstable conditions may result in decline. Well-managed depression or anxiety with stable treatment is often insurable.
Height and Weight
BMI above carrier limits. Build tables vary significantly between carriers. What one declines, another may approve.
Incomplete Information
Sometimes declines result from missing or incomplete medical records. Verifying your records and correcting errors may resolve the issue.
The MIB Record
What gets reported and for how long.
The Medical Information Bureau (MIB) maintains records about medical conditions discovered during insurance applications. Records are kept for seven years.
Important: MIB does not record whether you were approved, declined, or charged higher rates. It only records coded medical information. Future insurers cannot tell from MIB whether you were declined.
What MIB records
- ✓ Medical conditions disclosed or discovered
- ✓ Hazardous activities or lifestyle factors
- ✓ Stored as coded entries only
- ✓ Records expire after 7 years
Your Options
What you can do after being declined.
Apply with a Different Carrier
Different insurers have different underwriting guidelines. One carrier's decline can be another's approval for term life or whole life coverage. This is where working with an independent broker who knows multiple carriers is valuable.
Guaranteed Issue Life Insurance
No medical questions or exam. Accepts everyone within age limits (typically 50-85). Lower coverage limits ($5K-$25K typically) and higher premiums. Includes a 2-3 year graded benefit period. Available regardless of health history. Learn more about no-exam options and final expense insurance.
Simplified Issue
No exam but requires answering health questions. If your condition is not a disqualifying question, you may qualify. Higher coverage than guaranteed issue (up to $500K at some carriers). Can still decline based on your answers.
Wait and Reapply
If your health improves, you may qualify later. Recommended waiting periods: 3-6 months for minor issues, 12-24 months for major health changes, 2-5 years for cancer. Document your health improvements before reapplying.
Group Life Insurance
Employer-provided coverage is often guaranteed issue during enrollment periods. No individual underwriting for base amounts. An important option for anyone who has been declined individually.
Avoiding Future Declines
Informal inquiries let brokers check with carriers before formal application. No decline goes on record because no formal application is submitted.
Drew Napolin, CLU can provide detailed health information to carriers without your identifying details. Carriers respond with their likely decision. If they would decline, no record is created. If they would approve, you proceed with a formal application.
This process is especially valuable if you have already been declined. It lets you find the right carrier match without accumulating more declines on your record.
Why an Independent Broker
The difference an independent broker makes.
Captive agents work for one insurance company. If that company declines you, they have no alternatives. Independent brokers work with multiple carriers and can shop your case to find the best fit.
Independent broker advantages
- ✓ Access to multiple carriers with different underwriting
- ✓ Can run informal inquiries before formal application
- ✓ Knows which carriers specialize in specific conditions
- ✓ Your advocate, independent of any carrier
A decline is not the final answer.
Let's explore your options. There may be coverage available that the first carrier could not offer.