What to Do if You Are Denied Life Insurance

Getting denied life insurance feels overwhelming, but you can turn this setback into an opportunity to secure better coverage. Take these steps to address the specific 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.

Gather your documentation while it's fresh. Collect all application materials, correspondence, medical records, and test results used in your application. Organization matters for your next steps.

Review the denial letter carefully when it arrives. Identify the specific reasons cited, note any factual errors or misunderstandings, and determine if the denial is temporary or permanent.

Week 1–2: Assessment and Planning

Evaluate your appeal options realistically. Assess whether the denial reasons are correctable, determine if new information could change the decision, and consider the time and resources required for an appeal.

Talk to the right people for guidance. Speak with your doctor about health-related denial reasons, contact a licensed insurance agent for industry insights, and consider legal consultation if discrimination seems possible.

Research alternative insurers that might have different standards. Some companies specialize in high-risk applicants or have more liberal underwriting for specific conditions.

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 from your original application.

Choose your next move. Decide between appealing the current decision or applying to a new company. Plan the best timing for reapplication and prepare strong supporting documentation.

Health-Related Denials Require Different Waiting Periods:

• Minor issues: three to six months
• Major health changes: 12 to 24 months
• Cancer history: two to five years, depending on type

Financial Denials Often Resolve Faster:

• Credit improvement: six to 12 months
• Income documentation: three to six months
• Debt reduction: 12 to 18 months

Lifestyle Changes Vary by Situation:

• Smoking cessation: 12 months minimum
• Weight loss: six to 12 months
• Occupation change: Immediate with proper documentation

Life insurance companies can deny your application if they believe you're too risky to insure. That decision is made during underwriting, the review process insurers use to evaluate your health, lifestyle, finances and age.

If your risk profile is too high, you may be turned down for coverage, even if you've followed all the steps to apply for life insurance. Here are the most common reasons why people are denied life insurance:

Being denied life insurance can be frustrating, but you're not powerless. In many cases, you have the right to understand why you were denied and to challenge the decision if it's based on inaccurate or unfair information.

State and federal laws also offer important protections that prevent discrimination based on factors like age, disability or health history.

Start by requesting a clear explanation from the insurer. If you believe the denial was unjust, you may be able to appeal or escalate the issue with legal support.

Knowing your rights can make the difference between walking away and getting the coverage you deserve.

Various U.S. laws guard against discriminatory practices, including in the insurance industry. While not specifically addressing life insurance, these laws promote fairness and non-discrimination.

If your life insurance application is denied, your first move should be to ask the insurer for a written explanation. Companies are required to provide the reason for denial, typically through a formal letter.

This information is helpful as it shows you what went wrong and what you can do next. Review the explanation carefully.

If the denial was based on health concerns, you may be able to reapply after treatment or lifestyle changes. If it was related to finances, improving your credit or income stability could make a difference.

If you think your life insurance application was denied unfairly or the reasons provided don't make sense, it may be time to consult a lawyer. An attorney who specializes in insurance law can help you understand your rights, interpret the denial and determine if you have grounds to challenge the insurer's decision.

Legal support can be costly, so ask about fees upfront. Some attorneys work on a contingency basis, meaning they only get paid if you win your case.

This can be a practical option if you're facing a complex or potentially mishandled denial.

Being denied life insurance can feel like a dead end, but it's often just a detour. Whether you plan to appeal, reapply or explore alternative coverage, there are concrete steps you can take to move forward.

Understanding your options and the reasons behind the denial can help you improve your chances the next time you apply.

While a life insurance denial can be a setback, it may not be a definitive outcome. The appeal process offers a chance to challenge the decision and secure the coverage you need.

Understanding these key steps can improve your chances of overturning the denial.

When you reapply for life insurance, you'll need to disclose your previous denial on the application. Be ready to provide updated information about any changes since your initial denial. Here are tips for reapplying:

If you've been denied life insurance coverage and want to try again, you have two options: reapplying with the same company or applying with a new insurance provider. Each approach has different considerations and potential outcomes.

If you're classified as a high-risk applicant, knowing what might affect your application helps you decide your next steps and improve your chances of getting coverage.

Here are tips for different types of high-risk applicants:

Even if traditional life insurance isn't an option, you still have choices to protect your loved ones financially. These alternatives can help those facing challenges getting standard life insurance, such as older adults, people with certain health conditions or high-risk occupations.

• Self-Funding: This involves creating a savings account for your family to use after you pass away. It offers control over the funds but requires discipline and a large amount of savings.
• Employer-Sponsored Life Insurance: This works well if your employer offers a life insurance plan. These group plans often have more relaxed underwriting criteria, making it easier to secure coverage. Consider the portability of employer-sponsored life insurance, which lets you keep coverage when you change jobs.
• Guaranteed Coverage Plans: Also known as guaranteed acceptance life insurance, these plans work well if you have pre-existing health issues and can't get traditional life insurance. They don't require a medical exam but have higher premiums.
• Simplified Issue (No Medical) Life Insurance: Simplified issue life insurance doesn't require a medical exam and has fewer health-related questions than traditional life insurance. It costs more but works for people with health issues. Coverage amounts are often lower.
• Annuities With Long-Term Care Riders: These investment products provide income during retirement and long-term care benefits if needed. They offer retirement income and death benefits to your dependents. However, they can be complex and require a large upfront investment.

Your health plays a major role in determining life insurance rates and coverage eligibility. Insurance companies increasingly consider health improvements when assessing applicants.

Here are health improvement strategies to boost your chances of qualifying for better coverage.

Getting denied life insurance doesn't mean you're out of options. We've covered what to do if you're denied life insurance, from understanding the reasons to appealing the decision and finding alternative coverage.

A denial doesn't mean you're uninsurable forever. By knowing your rights, improving your risk profile and exploring other options, you can still secure financial protection for your loved ones.

Here are answers to common questions about life insurance denials.

Why Trust MoneyGeek

We analyzed 1,488 life insurance quotes alongside customer satisfaction ratings, financial stability reports, product offerings and more to determine the best life insurance companies for a variety of needs.

Recency

Coverage costs and company information for life insurance providers were updated in 2025.

MoneyGeek’s Scoring System

MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We chose to review these companies based on their broad national coverage and ability to provide an online quote. In our unique scoring system, companies can earn up to five points in each category. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:

• Affordability: 30%
• Financial Stability: 25%
• Buying Process: 20%
• Customer Satisfaction: 15%
• Product Diversity: 10%

For whole life policies, we used the following weightings:

• Financial Stability: 35%
• Customer Satisfaction: 25%
• Buying Process: 20%
• Product Diversity: 20%
  (Affordability was not considered for whole life quotes.)

For no-exam policies, we used these weights:

• Product Diversity: 35%
• Financial Stability: 25%
• Customer Satisfaction: 20%
• Buying Process: 20%
  (Affordability was not included as no-exam quotes were not collected.)

To determine the best cheap life insurance company, we used:

• Affordability: 50%
• Financial Stability: 15%
• Buying Process: 20%
• Customer Satisfaction: 5%
• Product Diversity: 10%

Each company’s score incorporates the following:

• Cost data obtained through online quotes
• Financial strength ratings from AM Best and number of years in business
• Customer satisfaction data from the NAIC complaint index (2020–2022)
• Availability of tools to support the buying process
• Diversity of life insurance products offered

Sample Customer Profile

MoneyGeek used a standard profile to obtain quotes: a 40-year-old male, nonsmoker, 5 feet 11 inches tall, 175 pounds, in excellent health.

We adjusted the profile by age, gender, height, weight, tobacco use, health rating and location to collect quotes for various customer types. We also gathered data for term life policies with different coverage amounts and durations.

We identified trends in the data set and used those patterns to calculate projections and extend the analysis beyond the initial quote set.

Explore a variety of life insurance underwriting resources to help you get started. Take advantage of these reliable resources to improve your understanding.

• American Council of Life Insurers (ACLI): Provides resources and advocacy for consumers seeking financial and retirement security, including those who have been denied life insurance.
• Better Business Bureau: Offers a search tool to find details about insurance companies, including trustworthiness ratings and customer complaints.
• Consumer Financial Protection Bureau (CFPB): Helps consumers understand their rights and make informed financial decisions. Offers guides and tools on financial topics, including insurance.
• Insurance Coverage Law Center: Provides legal news and analysis on life insurance and other insurance topics. It is helpful for understanding the legal aspects of life insurance.
• Life Happens: This nonprofit organization offers educational materials to help consumers understand life insurance and make informed decisions after a policy denial.
• National Association of Insurance Commissioners (NAIC): Offers regulatory information and resources to help consumers understand their rights and options after a life insurance denial.