Life Insurance Application Denial: To Appeal Or Not To Appeal
Denial of life insurance depends mainly on the pre-existing condition of the applicant. These people are those determined by the company as having risk deemed too high for them to accept their application. People with chronic diseases are often denied. Also denied are those whose lifestyle are too dangerous and extreme such as sky diving. There are also cases that your smoking and drinking can also lead to your denial of life insurance.
If you think that your denial is debatable then you can appeal by following the steps below
Request the Reason of Denial
There is always a reason for everything. If an insurance company denies your application, it should provide you with reasons as to why they disapprove of your application. They couldn’t just say that they denied you just because they want to, or somebody in the company hates you and don’t want you to live a happy life. It is your legal right to know as to their appropriate course of actions that lead to the denial of your application.
Review their Accusations
Read and understand their reasons on why you were rejected. Sometimes there might be misunderstanding such as those which are related in your lifestyle. They might not know that you had already given up on drinking and smoking. Bear in mind that these underwriters are also humans and they do make mistakes. If your denial was due to inaccurate information, then immediately contact the insurance company. Explain that some information was incorrect and they have to reconsider your application.
Review your health conditions
Some illnesses are not really that grave. Insurance companies have half the mind to accept anyone with medical illness history but most of the time they are overreacting. Have your doctor check on you again and ask him to write a medical explanation of your current health status. Submit this together with your reconsideration letter to the insurance company.
Review the policy
Life insurance policy covers a really wide range. Try to ask the insurance company to review with you the policies and check if certain exclusions might be feasible to have the plan work out. For instance, you are a sky diver and that is the reason why they denied your application. You can ask if death due to your flying activities can be excluded. This means that the company will not pay anything if you died sky diving or other related cause of death. This will lower the risk for the insurance company.
Look for other Insurance Company
This is the golden rule if you got denied from a certain insurance company. Try to look for other companies who understand your needs. There are hundreds of insurance companies all over the state who might be willing to offer you a different type of life insurance policy in which you can have a much greater coverage than your previous one. Don’t stop looking, for only in seeking we can find what we need.