It’s tough to accept that the life insurance company denied your request for obtaining life insurance. The reason could be that you may fall into the “impaired risk market,” which simply means that you have a high risk of dying prematurely.
Understandably, it’s not easy to get denied by a life insurance company. But, that doesn’t mean that the hunt for the approval is over. You can also apply to a more suitable company or apply for a different type of policy.
Here are three actionable steps that you can take under the same situation.
• Collect information: An insurer collects a lot of data from different sources about the application for the evaluation of the risk. If the risk is high, your application can be denied or postponed.
You can request your insurer to provide you detailed information on why your application has been denied. This information can surprise you more than you think as you may not know that you are diagnosed with a serious illness.
• Confirm the results: Mistakes can happen. Wires can cross. What you have to do next is to double-check the data that you collected from the insurer. If the cause of the decline of your application is poor or wrong exam result, confirm it from an expert physician.
In other cases, you could be denied because of your criminal record or financial distress. Make sure that your profile is updated and detailed.
• Work with an agent: Even after collecting lots of information and doing proper research, you may end up finding an average life insurance company. Hire an insurance agent. Pass detailed information to him as he can help you find better options. He can help you apply life insurance applications to another insurance company.
But, you’ve to understand that you can apply to another insurer only if the reason for rejection of your prior application was incompetent. Each insurance company has its own rules and regulations to follow and accepted before applying for the insurance.
If the root cause for the denial of your application is too strong, a different type of policy may be the last choice.
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