If you’ve been declined life insurance, you’re probably wondering what options are available to you now. In this blog, The Cheapest Life Insurance will look at the main reasons people get declined for life insurance, and how they may still be able to get cover.
The insurance provider will most likely send you a letter explaining why you have been declined, but the majority of reasons will be medical. Common reasons for insurance providers to decline someone include: high cholesterol levels, high blood sugar levels and obesity. You may also find yourself declined if you have elevated liver function, which can be an indication of alcohol abuse, or have recently been diagnosed with Hepatitis B or C.
The important thing is to not get disheartened by this. Just because one insurance provider hasn’t offered you cover, it doesn’t mean you are ‘uninsurable!’. Each insurance provider is tolerant towards different serious medical conditions. For example, one major life insurance provider is known to be especially tolerant towards diabetes; another is known to be especially tolerant towards a history of high alcohol intake. If you have a Financial Adviser or you have used a broker, then it is worth asking them about this.
You may also be declined due to your hobby. If you have a hobby that an insurance company may consider a ‘hazardous pursuit’, then you might be declined. Examples of hazardous pursuits that are considered dangerous enough to cause an insurance company to decline you include scuba diving and helicopter flying. Some insurers may not decline you, but may charge quite high premiums, and other companies may offer you the opportunity to exclude your hobby from your cover. This is another thing you need to speak to a Financial Adviser or broker about.
Alternatively, if you are over 50, you can take out a type of cover referred to as ‘Non-Medical’. This involves a much shorter application and no medical or health questions. The only question they will ever ask you is whether or not you smoke. The amount of cover is often a bit smaller than the amount you could get through other life insurance policies, but you only have to pay up to the age of 90, and then you are covered for life!
If neither of these options works for you, there are specialist life insurance providers who will cover people who other insurers have declined. Partnership will actually NOT cover people who are deemed healthy, because they know they will not be competitive compared to other insurance companies. Instead, they specialise in insurance for people with serious medical conditions or lifestyle factors that mean they struggle to find life insurance elsewhere.
So, as you can see, there are actually lots of options available to you if you have been declined for life insurance!