Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Insurance companies, when they offer coverage in any state, need to file their rates and underwriting standards with the Insurance Department of that state. Different companies may offer similar coverage, in this case Life Insurance, but their underwriting standards may vary. Certain elements like different rates for smokers vs non-smokers are pretty common, for example. However, if the underwriting process which includes a review of health history etc. identifies that you as the applicant for Life Insurance, may not meet the underwriting standards as filed, then the insurang company may deny coverage.
A life insurance policy could be denied for any of the following reasons:
1) The applicant's health was not controlled. This can be anything from someone with diabetes having an A1C over 10, to someone with cancer having only months to live.
2) The applicant's health has not been stable for a certain length of time. This can range from someone who had very high blood pressure and only been on medication for one month, to someone with MS who has had a recent major exacerbation.
3) The applicant is planning to have major medical testing or procedure done in the near future. In other words, if your doctor has scheduled a test to see if you have Parkinson's, you will need to wait until after the test to apply. If you have gastric bypass surgery scheduled in two months, the insurance company will ask that you wait until after your surgery to apply.
4) The applicant has had a recent bankruptcy that has not been discharged, has undergone recent drug or alcohol treatment, has had numerous traffic violations in the past year, or other non-health related risk factors.
The above mostly relate to medically underwritten policies. There are simplified issue policies (that do not require an exam) and guaranteed issued policies (that do not have any requirements) that can be obtained when a medically underwritten policy will not work. Simplified and guaranteed issue policies do have restrictions on face amounts, you must be in a certain age range to get them, and they are not available in every state. Thus, some people do apply for simplified issue or guaranteed issue policies and get declined simply because they do not fit the age, or it is not offered in their state. This is most common for persons applying by mail or online. If you enlist the help of a good agent, you can avoid many declines by having proper guidance in the first place.
On top of the other answers, I wanted to add another reason life insurance might be denied. If you travel or are in the military which takes you to what is referred to a "hot zone", then you may be denied or an exclusion may be made however it usually is a denial.
Even if you are considering vacation down to say Mexico, there are places in that country which companies have on there hot list. Be sure to ask your agent or company if you are covered when you place to leave the states.
President, Lane Independent Agency, Southern California
A remember to tell the truth about everything and do not leave anything out. They will find it out anyway, and lying is a major reason for denial, along with health issues. Gary Lane, New York Life 949 797 2424. Thank you.
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1) The applicant's health was not controlled. This can be anything from someone with diabetes having an A1C over 10, to someone with cancer having only months to live.
2) The applicant's health has not been stable for a certain length of time. This can range from someone who had very high blood pressure and only been on medication for one month, to someone with MS who has had a recent major exacerbation.
3) The applicant is planning to have major medical testing or procedure done in the near future. In other words, if your doctor has scheduled a test to see if you have Parkinson's, you will need to wait until after the test to apply. If you have gastric bypass surgery scheduled in two months, the insurance company will ask that you wait until after your surgery to apply.
4) The applicant has had a recent bankruptcy that has not been discharged, has undergone recent drug or alcohol treatment, has had numerous traffic violations in the past year, or other non-health related risk factors.
The above mostly relate to medically underwritten policies. There are simplified issue policies (that do not require an exam) and guaranteed issued policies (that do not have any requirements) that can be obtained when a medically underwritten policy will not work. Simplified and guaranteed issue policies do have restrictions on face amounts, you must be in a certain age range to get them, and they are not available in every state. Thus, some people do apply for simplified issue or guaranteed issue policies and get declined simply because they do not fit the age, or it is not offered in their state. This is most common for persons applying by mail or online. If you enlist the help of a good agent, you can avoid many declines by having proper guidance in the first place.
Even if you are considering vacation down to say Mexico, there are places in that country which companies have on there hot list. Be sure to ask your agent or company if you are covered when you place to leave the states.