If you have any type of adverse health condition, you know that it can be difficult to qualify for life insurance – and in fact, you may even have been declined for coverage altogether in the past. If this is the case, you may not know what to do, as your need for life insurance protection still exists.
It can be a confusing and frustrating time. You have no idea where to turn next. A lot of people think that they will have to go without life insurance coverage, but that isn’t true.
The good news is that you still have options for obtaining the life insurance coverage that you need – you just need to know where to look, as well as where to go to apply. We can help you with such options, as we work with many of the top life insurance companies in the country – many of which specialize in working with higher risk cases.
Options After Being Declined
While you may have been declined for a traditional life insurance policy that is medically underwritten, you still have some options available to you in terms of obtaining life insurance coverage. Two of the best options for you may include going with either a graded life insurance policy or a no exam life insurance policy. (Oftentimes, these are one in the same).
Graded Policies
For those who have been denied for life insurance coverage, one alternate option is to go with a graded policy. These policies will pay out a limited amount of coverage – typically using a “sliding” scale over time, meaning that the beneficiary will only receive a certain percentage of the total amount of the death benefit until a certain amount of time has passed. Usually, this time period is between two and three years.
In some cases, an individual may purchase more than one graded life insurance policy at a time. This will allow him or her to “accumulate” a larger amount of death benefit for their beneficiary should they pass away within a short period of time. Although this will cost more in premium, it will help to pay off debt and / or to replace income for survivors – and it can be a viable strategy if there is no other possible options.
No Exam Policies
One of the best options that you have if you were declined for life insurance is to opt for a no medical exam policy. With a no medical exam life insurance policy, just as the name implies, you will not be required to take a medical examination as part of the underwriting process. In fact, in some cases, depending on the type of plan you choose, you may not even be asked any medical questions at all on the application for coverage.
With these policies, then, virtually everyone who applies is guaranteed to be accepted – regardless of their health condition. Yet, while that is good news, there are some things to be aware of.
First, in many cases, the face amount of coverage on these policies is typically in the lower ranges – in most instances it is between $5,000 and $50,000 – although some insurers do allow higher death benefits with a term policy. No exam policies that are whole life insurance will stay in that lower range.
In addition, because the insurance company that underwrites the coverage is taking on a higher amount of risk, the premium that is charged for a no exam life insurance policy will typically be higher than for a comparable policy that is underwritten in the traditional manner.
With this in mind, however, a no exam life insurance policy is oftentimes considered to be the “coverage of last resort” – and it does allow many individuals who would otherwise never be able to qualify for life insurance to obtain the protection that they need to provide their loved ones with funds for debt payoff, replacement of income, and peace of mind.
Other Possible Considerations
Depending on the reason you were declined for traditional coverage, you may also simply try re-applying for coverage with an insurance carrier that has more relaxed underwriting requirements. Depending on the individual insurer, it is possible that you could be approved for the life insurance that you need.
By working with a company that has access to numerous insurers, you will have much better odds of being approved, as your application can be shopped to a number of insurers, rather than being bound to just one single life insurance company. There are also companies who offer FEGLI life insurance if this is something you are looking for.
There are dozens of different companies that specialize in working with high-risk patients and will give you much better rates or will accept you for coverage when other companies won’t. There are companies that specialize in diabetic patients, or applicants with cardiovascular conditions. Finding the perfect company could be the difference in getting affordable coverage or having your application declined.
We can also help in finding coverage for other specialized cases, such as for those who are marijuana smokers and those who have had a DUI, and individuals who have hobbies that are considered dangerous such as rock climbers and skydivers.
Once we have a good understanding of your specific situation, we can put your case out to bid to numerous different life insurance carriers that we work with. The underwriters from these insurance companies will then contact us with what is referred to as a “trial offer.” This entails offering an approximate quote for what the underwriters anticipate your coverage costing prior to fully analyzing all of your information.
If you have any severe health complication, the life insurance company is going to ask you several specific questions that are going to impact your chances of getting approved for coverage.
- When you were diagnosed with your condition.
- What medications, if any, you are taking for your condition.
- What complications, if any, you experience due to your condition.
- What tests and / or surgeries you have had because of your condition.
- How often you visit your doctor and / or specialist because of your condition.
You’ll also be required to go through a medical exam (unless you purchase a no exam policy). The results from the exam are going to play a huge role in your chances of being accepted for the policy. If you’ve been declined before, you’ll want to improve your health before you reapply for coverage. You can do this with a healthy diet and exercise. Both are going to help you lose weight, lower your blood pressure, lower your heart rate, and have a whole host of other benefits that will improve your results from the exam.
How to Purchase the Life Insurance Coverage You Need
While being declined for life insurance coverage is never a pleasant experience, it is definitely not the end of the road when it comes to obtaining the financial protection that you need for keeping your loved ones safe through life insurance. The good news is that you can still plan to pay off debt, replace income, and cover final expenses by using an alternative form of life insurance coverage. When doing so, we can help you to accomplish your coverage goals.
When you’re ready to purchase the coverage that you need – even after you’ve been declined by other carriers – we are ready to help. Because we work with many of the top rated life insurance companies in the industry, we are familiar with which insurers specialize in higher risk cases. Therefore, we can point you in the right direction of the carrier that may serve you best for your particular needs. This can essentially save you a great deal of time and frustration during the life insurance application process.
Because the premiums can differ a great deal from one carrier to another – even on no exam policies – it is always best to compare premium quotes before moving forward. We can help you with that, too. By simply using the form on this page, you can compare quotes from top rated insurance companies within seconds. This can help you to review policies quickly and conveniently from the comfort of your home.
If you have been rated or declined for life insurance in the past, it doesn’t mean that you have to go without life insurance coverage in the future. It just means that you may not have applied in the right place. Nobody should have to go without the insurance protection that they or their family deserve.
Should you have any additional questions about obtaining premium quotes, or the life insurance application process, please contact us directly. Our experts are here to help, at 334-380-4188. We want to ensure that you obtain the best policy for your coverage needs and your premium budget.
