What Should I Do If My Application Is Declined?

There's hope
if you're declined.
Photo by Ibrahim Iujaz

When someone applies for life insurance in Canada, only one of three things can happen:

1. The policy is approved. This happens to about 80% of all applicants, although the number is much higher among younger applicants, since younger people are generally healthier.

2. The policy is issued, but on a rated basis. This means that the insured is approved, but the premiums are higher due to health or lifestyle issues.

3. The application is declined. Once again, this would be related to health or lifestyle issues, but in this instance the insured is denied insurance completely.

The first step to take when someone has been declined for life insurance is to find out why he or she has been declined. Insurance companies will likely not provide these details to your broker due to confidentiality legislation. The insured can get this information mailed to his or her doctor by providing authorization to the insurance company.

Once the insured finds out why he or she was declined, he can verify if there was an error in the decision and/or if the insured's health issues can be readily rectified.

If it is a condition that is unlikely to stabilize or disappear, the insured can look at non-medical life insurance solutions. Non-medical life insurance can take the form of guaranteed issue coverage, which is available without a medical and without health questions, or simplified issue coverage, which is available without a medical, but with anywhere from three to twelve health questions. Simplified issue plans however, can offer coverage from day one and offer lower premiums and higher face amounts than guaranteed issue life insurance plans.

For more details, please contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.