What to do if you’ve been refused life insurance

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Different insurance companies have their own criteria and assessments of risk for life insurance applicants, so don’t be put off if you are declined when you apply for life insurance.

Just because one insurer declines your application, it doesn’t mean you’ll be refused by another. However, it’s important to make sure you take the right action to have the best chance of being approved and accessing the best life insurance deals available.

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Why you might have been refused life insurance

If your life insurance application has been refused, your first step should be to find out the exact reasons why it was declined. Usually, the decision is based on both health and lifestyle factors, such as whether or not you are a smoker, you have a pre-existing medical condition, you are older and so on.

You can get in touch with your doctor for a copy of your medical records, or ask the insurance company to send you what medical information they have for you. When you receive this, you may get a good idea why the life insurance company refused you cover. However, if you’re still unsure, you can also speak to an insurance advisor who may be able to shed some light on the reason.

If you are deemed a high-risk applicant then an insurer may decide that you represent too much financial risk. Or they may determine that they will only provide cover, but with very high premiums.

Common medical reasons that can lead to life insurance being declined

Typically, life insurance tends to be refused for one of the below medical conditions:

  • High cholesterol, lipids or triglycerides
  • Being overweight or obese
  • Elevated liver function
  • History of cancer
  • Hepatitis
  • HIV and AIDS
  • High levels of glucose or blood sugar

It’s important to note that your application will not necessarily be rejected if you have one of the above medical conditions, but you may find it difficult to get insurance.

Also, if you develop one of these conditions after you have taken out a life insurance policy then don’t worry, your cover should still be valid. If you want to be on the safe side, though, it doesn't harm to ring your insurer to double-check that you're still covered.

Common lifestyle factors that can lead to life insurance being declined

As well as pre-existing medical conditions, life insurance can also be declined for lifestyle factors such as:

  • Smoking
  • Alcohol consumption
  • Occupation – if you work at heights, in construction, at sea, etc.
  • Income levels – some insurers might decide to not insure you on the basis of your income being too low, as they assume you won’t be able to keep up with your payments.
  • Previous rejections – if you’ve been previously refused life insurance, you may appear to be a higher risk to insure.

How to find cheap life insurance deals if you have been refused

It is still possible to get life insurance cover if you’ve previously been rejected, but how good a deal you can get will depend on why your application was unsuccessful. That’s why it is important to first try and find out the reason you were previously refused cover. If it was due to lifestyle factors, for instance, then you could get a better deal if you make certain changes to your lifestyle - for example, stopping smoking or cutting down on alcohol.

If you are refused life insurance on the basis of something you can’t change, such as a medical condition, then don’t worry – there are specialist insurance companies who will provide cover for certain medical conditions. Your options may be more limited as you won’t have access to the full life insurance market, but the extra cost may be worth it for the peace of mind the cover will bring.

If you need help finding a cheap life insurance deal, get a free quote from Bobatoo today:

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