Use our life insurance calculator to find out how much life insurance you need to give you and your family ultimate peace of mind.
Rejection is never easy. But it’s a part of life — and if you’re applying to colleges, jobs, or life insurance, getting notified that you’ve been rejected can really hurt.
But there are more colleges, jobs, and yes, life insurance companies out there — so when you’re ready to pick your search back up, we have a few tips up our sleeve to help you get your application accepted and peace of mind back. (Well, okay, we can’t exactly help with the first two...)
Why apply for life insurance?
Life insurance is a peace of mind product. It’s meant to replace your income in case the unexpected happens and you are no longer around to support your family or loved ones. Like most types of insurance, no two policies are exactly the same — plus, there’s always room for customization or add-ons. Life insurance can be useful if:
You have a spouse, dependents, or family.
You have a mortgage.
You have debt (like student loans, a car loan, or other debts).
You have dreams of having one (or a few!) of the above and want extra support and peace of mind for your long-term plans.
Reasons why a life insurance policy would be denied
Life insurance companies evaluate multiple factors to determine your risk. Every insurer is different — one company could reject your application, while another could instantly accept you with an affordable rate. However, there are some common reasons why a life insurance policy would be denied that companies across the board generally follow. If you’ve recently been denied life insurance, it’s possible it could have been for one of these reasons:
Chronic illness. If you’re suffering from a chronic illness at the time you apply for life insurance, the insurer might deny your application. However, if you have a chronic illness, don’t give up just yet. Read our tips on how to get life insurance with a pre-existing condition here.
Physical health. Even if you’re interested in a policy that doesn’t require a medical exam, many life insurance providers will still consider the current state of your physical health. If you suffer from high cholesterol, obesity, diabetes, heart disease, or another medical condition, you may be viewed as a higher risk and could be denied a policy.
Mental health. If you have a history of mental health issues like anxiety, PTSD, or self-harm, unfortunately, many providers will deny coverage.
Age. The older you are, the more expensive your life insurance premium will be. Though you might not necessarily be denied for your age, policies can be out of your price range. This is because the older you are, the more likely you are to develop health problems and other high-risk factors.
Lifestyle choices. If you smoke, have a history of alcoholism, have a hazardous job, or do risky activities like skydive regularly (we’re not sure if we’re scared for you or jealous), you might be denied life insurance coverage.
Lying on your application. If you lie on your application or during your medical exam or leave out information the insurance company needs to know (like past surgeries, illnesses, and lifestyle choices, for example), your application can be rejected.
How to get life insurance if you’re denied a policy
Even if you’ve been denied in the past, it doesn’t automatically mean you’ll never be able to get coverage in the future. Keep in mind, though: it might take some additional work. But if you’re ready to keep searching, start here:
Talk to the insurer.
If your term life insurance application is denied, make sure to contact the life insurers (if they don’t contact you first) to find out why. From there, you’ll be able to strategize on what to do next and how to get approved for life insurance coverage the next go-round.
Keep applying for life insurance.
You can always apply (and re-apply) for term life insurance. There are a number of life insurance carriers out there. Consider applying to others until you find the right fit. (It’s free to apply, after all.)
With some term life insurance policies, an in-person medical exam isn’t required. This could be a good option if you’ve been denied for medical reasons in the past. The application requires you to answer a few basic health questions about your personal and family medical history, and you'll receive a customizable policy based on those responses.
Consider guaranteed issue life insurance.
Guaranteed issue life insurance doesn't require medical exams or invasive questions about your medical records, making it an attractive option for those with pre-existing health conditions — as long as you’re within a certain age range. (Which depends on the provider.) There are a few terms and conditions to this that you should be aware of in the decision process, however.
For example, many guaranteed issue life insurance policies cap death benefits (paid out to your beneficiaries if something were to happen to you) at $25,000, and your coverage premiums are significantly higher than traditional term life insurance policies. But if your budget is flexible and the coverage would give you more peace of mind, guaranteed issue life insurance could be the best option for you and your family.
Tired of applying for life insurance? What to do if you’re still denied life insurance
It can happen — you’ve just about exhausted all your free time, mental space, and life insurance company options. If you’re tired of applying for life insurance, here are a few other options you can look into next.
Focus on what you can control.
If there are ways to manage your pre-existing condition and improve your health, now’s the time to act. If you have medication, make sure to take it. If you can start an exercise and healthy eating regimen, do it. If you have health insurance, double-check to see if you’ve made it to all your preventive visits. If you’re leading a healthy lifestyle and taking measures to manage your condition, your life insurance rates could reflect it.
Invest the money you would have paid in premiums.
If your goal with life insurance is to financially help your beneficiaries, starting a well-managed investment account could help you achieve this.
Take a second look at your employer’s life insurance benefit.
In some cases, you can add to your existing life insurance policy through your employer (which is typically one times your annual salary) at a discounted group rate. Talk to your HR representative to learn your employer’s policy terms and additional options.
Long story short, don’t think you’ll never be able to get life insurance after your first denial. With each tip, you’re one step closer to becoming a policyholder and giving your loved ones a lifetime of peace of mind. And to us, that’s worth all the effort.