Getting denied life insurance feels overwhelming, but you can still secure better coverage. Take these steps to address the reasons for your denial, and most people who follow this approach eventually get the coverage they need.
Right Now: First 48 Hours
Call the underwriting department immediately. Don't wait for the formal letter. Ask for a detailed explanation of the denial reasons and request specific information about what triggered the decision. Companies must provide the reason for denial through a formal letter.
Gather your documentation while it's fresh: application materials, correspondence, medical records and test results used in your application.
Review the denial letter when the letter arrives. Identify the specific reasons cited, note any factual errors or misunderstandings. Find out if the denial is temporary or permanent.
Weeks 1 to 2: Assessment and Planning
Evaluate your appeal options. Assess whether the denial reasons are correctable.
Talk to professionals for guidance. Speak with your doctor about health-related denial reasons, contact a licensed insurance agent and consider legal consultation.
Research alternative insurers that might have different standards. Some companies specialize in high-risk applicants.
Month 1: Taking Action
Address what you can control based on the denial type. Improve health metrics if it's health-related, enhance financial documentation if it's finance-related or correct any misinformation.
Choose your next move. Decide whether to appeal the denial or apply to a new company.
- Health-related denials require different waiting periods. Minor issues resolve in three to six months, while major health changes need 12 to 24 months.
- Financial denials often resolve faster. Credit improvement takes six to 12 months, income documentation needs three to six months, and debt reduction takes 12 to 18 months.
- Lifestyle changes vary by situation. Quitting smoking requires 12 months minimum, weight loss takes six to 12 months, and occupation changes can be immediate.
