Skip to Search

Skip to Content

You Were Denied Life Insurance. What Now? Follow these five steps to ensure your loved ones have the coverage they need.

There are a number of steps you can take if you've been denied life insurance. Follow these five steps to ensure your loved ones have the life insurance coverage they need.

You were rejected for life insurance coverage and aren't sure why — or what to do next. Unfortunately, this can happen for a number of reasons, including your health, financial history, or driving record, to name a few. Not to fret — it's not necessarily the end of the road. There are a number of steps you can take if you've been denied life insurance coverage.

Here are some steps you can take if you've been denied life insurance coverage

1. Ask why you were denied life insurance coverage.

Before you can be approved for coverage, life insurance providers must evaluate your risk level. A number of factors are used to determine your risk rating, including your health questionnaire, medical exam results (a prerequisite for many life insurance policies), driving record, and financial history, among other things.

The underwriter (the person who reviews your application) may request additional information from you or your health care provider.

After that data is collected, you'll receive a rating that will determine whether you are approved or denied life insurance coverage.

Regardless of the outcome, you have the right to ask for more information.

In some instances, you may have an existing policy, but aren't able to get approved for more coverage. For example, if you make $50,000 a year and you currently have $250,000 in coverage, you may not be able to increase your coverage to $2 million.

Life insurance providers have limits to the amount of coverage they can approve, based on the type of life insurance you're seeking and your individual situation.

2. Double-check that the information is correct.

When it comes to manual data entry, there is always the possibility of human error. Maybe incorrect information was associated with your name. It could even be incomplete information that's hindering your approval — like new, undiagnosed lab results. After you find out why you've been denied life insurance coverage, double-check the results with the source, such as a primary care physician if it's health-related or the Department of Motor Vehicles if it's tied to your driving record.

3. Work with a licensed life insurance agent to weigh your options.

Ideally, your life insurance provider should have a team of licensed life insurance agents who are able to help answer your questions, weigh your options or customize a policy to meet your family's specific needs.

These agents can also look into why you were denied and present you with other options you may not have considered.

It's a great way to get accurate information in real-time, from someone who has experience working with others in similar situations.

4. Consider waiting a period of time and applying for life insurance again, seeking a physician's counsel, or applying for a different type of life insurance.

Which option is best for you? It depends on the reason you were denied.

For instance, let's say that you were denied due to your driving record. After a period of time, your offense may be dropped from your record, which could enable you to get approved at that time.

Or your medical exam results may have been the reason you were denied life insurance. Maybe you have high blood pressure, which is the case for one in three American adults.By effectively managing your high blood pressure through the care of a physician and medication, you might be able to positively influence your risk assessment.

If you have a chronic condition and initially applied for term life insurance, which requires a health questionnaire and medical exam for approval, look into obtaining a no-medical-exam life insurance policy.

5. Consider a different life insurance company.

Fortunately, no one life insurance company has the final say over whether or not you can obtain life insurance. If one life insurance provider denies your application for coverage and you've followed all of the steps above, try pursuing your options elsewhere.

It is possible to get denied life insurance from one provider and approved by another, depending on the reason.

One of our licensed life insurance agent should be able to point you in the right direction, based on your unique situation.

To weigh your options, speak to one of AIG Direct's knowledgeable life insurance agents at 800-294-4544.


1 "High Blood Pressure Fact Sheet;" Centers for Disease Control and Prevention; Updated June 2016; Web; Accessed August 2018 (https://www.cdc.gov/dhdsp/data_statistics/fact_sheets /fs_bloodpressure.htm)

Help protect your family with Life Insurance!

Related Articles

5 Questions to Ask Before You Buy Life Insurance: These common questions can help you prepare to buy life insurance.

5 Questions to Ask Before You Buy Life Insurance

October 2016

Read full article...

5 Factors That Affect Your Life Insurance Premiums: Learn what could be driving up your life insurance rates

5 Factors That Affect Your Life Insurance Premiums

September 2016

Read full article...

Life Insurance with Pre-Existing Conditions: Life insurance for people with health problems can be within reach

Life Insurance with Pre-Existing Conditions

January 2017

Read full article...