Co-Founder, Coastal Financial Partners Group, California
An applicant for life insurance would be turned down or declined for any number of uninsurable conditions such as recent bypass surgery, heart attack, stroke, current cancer treatment, etc. Some conditions where all treatment has been completed and enough time has past may mean that the applicant becomes insurable again, though at higher than normal rates (sub-standard rating).
There are a number of reasons to be turned down for life insurance. I have elaborated on them in my article here, along with ways to avoid or correct each problem: http://ezinearticles.com/?Ive-Been-Declined-For-Life-Insurance&id=2844554
In summary, they are:
1) The product does not cover your health condition or other risk factor (such as suspended drivers license, recent bankruptcy, dangerous hobby)
2) Your application is incomplete and no one points it out to you
3) Something is in your medical records that you are unaware of, that causes you to be declined
4) The underwriter asks for more medical records and no one provides them
5) You have done everything right but your health does not meet the qualifications
Being turned down is a frustrating, heart wrenching experience. You can lessen your chances of being turned down by using an agent or agency that understands your health and risk factors and puts you with the correct product to start with, then follows the underwriting process closely to make sure it is completed properly.
Sometimes, though, in trying to get the best price, declines do happen. It is not the end of the world. There is usually something else out there for you. Find yourself an agent who vows to stay the course with you until you get what you need.
There can be several factors that lead to a underwriting declination. Health history and current medical condition are significant items in the crediting or debiting of the underwriting balance sheet. Personal behaviors like motor vehicle violations, drug addictions, dangerous recreational activities, even hazardous occupations can be the basis of an underwriting declination.
Unfortunately, some people are turned down for life insurance for very simple reasons because they did not sign up for the appropriate policy to start with. To avoid being turned down, be sure to read the guidelines very carefully. It is far better to converse with an agent to be sure you did not overlook something.
E.g. Some policies require that you have a drivers license; some don't. Some require that you are a US citizen; some don't. Some allow a certain policy to cover people with diabetes; some don't. Those type of declines are easy to avoid by just talking to tan agent.
Other declines are more complicated. You may have a history of depression that sounds OK, but then get declined because your doctor wrote something in your medical records of which you were unaware. With any kind of health history or risk factors such as past alcohol treatment, use an impaired risk specialist to lower your chance of being turned down. There are policies out there for nearly everyone if you know where to look.
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In summary, they are:
1) The product does not cover your health condition or other risk factor (such as suspended drivers license, recent bankruptcy, dangerous hobby)
2) Your application is incomplete and no one points it out to you
3) Something is in your medical records that you are unaware of, that causes you to be declined
4) The underwriter asks for more medical records and no one provides them
5) You have done everything right but your health does not meet the qualifications
Being turned down is a frustrating, heart wrenching experience. You can lessen your chances of being turned down by using an agent or agency that understands your health and risk factors and puts you with the correct product to start with, then follows the underwriting process closely to make sure it is completed properly.
Sometimes, though, in trying to get the best price, declines do happen. It is not the end of the world. There is usually something else out there for you. Find yourself an agent who vows to stay the course with you until you get what you need.
E.g. Some policies require that you have a drivers license; some don't. Some require that you are a US citizen; some don't. Some allow a certain policy to cover people with diabetes; some don't. Those type of declines are easy to avoid by just talking to tan agent.
Other declines are more complicated. You may have a history of depression that sounds OK, but then get declined because your doctor wrote something in your medical records of which you were unaware. With any kind of health history or risk factors such as past alcohol treatment, use an impaired risk specialist to lower your chance of being turned down. There are policies out there for nearly everyone if you know where to look.