What happens if you're denied life insurance?
What happens if your life insurance application is denied?
Being denied life insurance can feel discouraging, especially when you're trying to protect the people who matter most. If your
life insurance application is denied, it's natural to wonder what happens next and whether you'll ever be able to get coverage.
A denied life insurance application doesn't necessarily mean you'll never qualify for coverage. Life insurance companies evaluate every application using their own underwriting guidelines, and those guidelines vary by insurer and product. Depending on the reason for the denial, you may be able to correct inaccurate information, reapply later, or explore another type of life insurance that better fits your situation.
Although many people qualify for life insurance, some applications are declined because an applicant doesn't meet an insurer's underwriting requirements. The good news is that a denial is not always permanent. Understanding why your life insurance application was denied can help you decide on your next steps and identify other life insurance coverage options that may be available.
How common is it to be denied life insurance?
While many applicants qualify for life insurance coverage, denials do happen. A life insurance application may be declined for
several reasons, including health history, tobacco use, financial considerations, or the amount of coverage requested.
Being denied life insurance doesn't automatically mean every insurance company will reach the same decision. Underwriting standards vary, and another insurer—or another type of life insurance—may evaluate your application differently.
Why would someone be denied life insurance?
Life insurance companies evaluate applications through a process called underwriting.
Underwriting is the process an insurer uses to assess the level of risk involved in providing life insurance coverage. Depending on the product, underwriting may include reviewing your application, medical records when applicable, prescription history, lifestyle information, financial information, and other relevant records.
Rather than focusing on one factor alone, underwriters consider your overall risk profile. That's why two insurance companies reviewing the same life insurance application may reach different decisions.
Below are some common life insurance denial reasons.
Health history
Health is one of the primary factors considered during underwriting. Certain medical conditions may increase the likelihood that a life insurance application is denied, particularly if they're recent, severe, or not well managed.
Examples include:
- Certain cancers
- Heart disease
- Stroke history
- Uncontrolled diabetes
- Chronic lung disease
- Kidney disease
Having one of these conditions doesn't automatically mean you'll be denied life insurance. Many applicants with ongoing health issues still qualify for life insurance coverage. Eligibility depends on factors such as your overall health, treatment history, current condition, and the underwriting guidelines of the insurance company.
Tobacco and nicotine use
Smoking and other nicotine use can affect both eligibility and premium rates.
Life insurance companies may ask about:
- Cigarette smoking
- Vaping
- Cigars
- Chewing tobacco
- Other nicotine products
Depending on the insurer and the product, tobacco users may qualify for life insurance coverage at a different premium, while others may receive a denial based on their overall risk profile.
High-risk occupations or activities
Some occupations and hobbies involve a greater chance of serious injury or death. Insurance companies may consider these activities during underwriting.
Examples include:
- Commercial fishing
- Logging
- Roofing
- Aviation
- Skydiving
- Scuba diving
Participating in one of these activities doesn't automatically result in a denied life insurance application, but it may require additional underwriting review.
Driving record
Your driving history may also influence a life insurance application.
An insurer may review:
- Multiple DUI convictions
- Reckless driving
- Numerous speeding violations
- Serious at-fault accidents
Insurance companies typically look for patterns that indicate a higher level of risk.
Prescription history
Many insurers review prescription drug databases during the underwriting process.
Prescription history helps verify information included in your life insurance application and provides additional context about your medical history.
If your records appear incomplete or inaccurate, ask the insurance company how those records can be reviewed before assuming the denial is final.
Criminal history
Recent criminal convictions or incarceration may affect eligibility for certain life insurance products.
Each insurance company evaluates criminal history differently. Underwriting decisions may consider the nature of the offense, when it occurred, and whether legal obligations have been fulfilled.
Financial considerations
Life insurance is intended to provide financial protection. As part of the underwriting process, an insurer may review financial information to determine whether the requested coverage amount is appropriate.
Examples include:
- Recent bankruptcy
- Coverage amounts that appear inconsistent with income
These reviews help verify application information and don't automatically mean a life insurance application will be denied.
Age limits
Many life insurance products have maximum issue ages. If you've been denied life insurance because a particular product isn't available for your age, another type of life insurance may still be an option. Some products are specifically designed for adults applying later in life and have different eligibility requirements.
What information is required on a life insurance application?
Although requirements vary by insurance company and product, a life insurance application may ask for information such as:
- Your age and date of birth
- Height and weight
- Medical history
- Current prescription medications
- Tobacco or nicotine use
- Occupation
- Hobbies and recreational activities
- Driving history
- Requested coverage amount
- Beneficiary information
A beneficiary is the person or entity you choose to receive the death benefit if a covered claim is paid. Depending on the product, the insurer may also review medical records, prescription databases, consumer reports, or request additional information before making an underwriting decision.
Common life insurance denial reasons
| Reason | Why it may affect underwriting |
|---|---|
| Health history | Certain medical conditions or recent health events may increase risk. |
| Tobacco or nicotine use | Smoking and nicotine products may affect eligibility or premiums. |
| High-risk occupation | Jobs with greater occupational hazards may require additional underwriting. |
| Dangerous hobbies | Activities such as skydiving or scuba diving may increase risk. |
| Driving history | Multiple serious violations or DUIs may affect underwriting decisions. |
| Criminal history | Recent convictions or incarceration may affect eligibility for some products. |
| Financial considerations | Requested coverage amounts and financial information are reviewed for consistency. |
| Age limits | Some products have maximum issue ages, although other coverage options may still be available. |
How will you know why your life insurance application was denied?
If your life insurance application is denied, the insurance company will generally provide information regarding the underwriting decision as required by applicable law and its procedures.
Reviewing the underwriting decision carefully can help you determine whether the issue is temporary, administrative, or something that may require you to consider another type of life insurance coverage.
You may want to:
- Request the underwriting explanation.
- Review any medical information used during the evaluation.
- Check your life insurance application for factual errors.
- Ask whether prescription history or consumer reports contributed to the decision.
If a consumer report was used during underwriting, you'll receive, where required by applicable law, information about the reporting agency and your rights under applicable consumer protection laws.
What should you do after a denied life insurance application?
A denied life insurance application can feel like a setback, but it doesn't have to be the end of your search for life insurance coverage. The next steps depend on why your application was denied and whether the reason is temporary, permanent, or administrative.
Taking the following steps can help you better understand the underwriting decision and determine what options may still be available.
-
Review the reason carefully
Start by finding out exactly why your life insurance application was denied.
The reason generally falls into one of three categories:- Temporary: A recent health event, surgery, or other situation that may improve over time.
- Permanent: Factors that may continue to affect eligibility for certain life insurance products.
- Administrative: Missing information, documentation issues, or errors on the application.
-
Correct any errors
Even small inaccuracies may affect an underwriting decision.
Review your life insurance application and supporting records for errors such as:- Incorrect medical records
- Prescription information that doesn't belong to you
- An inaccurate tobacco or nicotine use history
- Incorrect employment or income information
- Missing application details
-
Ask whether you can reapply
A denied life insurance application isn't always permanent. Depending on the reason for the denial, the insurance company may allow you to submit another life insurance application after a waiting period.
Examples of changes that an insurer may consider in a future application, depending on its underwriting guidelines, include:- Quitting smoking or using nicotine products
- Improving blood pressure or cholesterol under the guidance of a healthcare professional
- Better management of an ongoing medical condition
- Recovering from a temporary illness or surgery
- Completing a recommended follow-up period after treatment
-
Compare other life insurance companies
Every insurance company develops its own underwriting guidelines. That means one insurer may decline a life insurance application while another insurance company may determine that the same applicant qualifies for a similar product.
When comparing life insurance companies, consider factors such as:- The types of products offered
- Age eligibility
- Underwriting requirements
- Medical exam requirements
- Coverage amounts available
-
Consider a different type of life insurance
If one type of life insurance isn't available, another product may have different underwriting requirements.
Depending on your age, health, and financial goals, another type of life insurance may provide the protection you're looking for.
Life insurance options after a denial
A denied life insurance application doesn't necessarily mean your only option is to apply for the same product again.
Several types of life insurance have different underwriting requirements. Understanding how they compare can help you identify coverage options that may better fit your needs.
Guaranteed acceptance life insurance
Guaranteed acceptance life insurance is designed for people who may have difficulty qualifying for traditional life insurance.
Depending on the product, applicants generally don't need a medical exam, and some products don't require health questions. Other eligibility requirements, including age limits, still apply.
Guaranteed acceptance life insurance may be appropriate for people who:
- Have been denied life insurance previously
- Prefer a simplified application process
- Want coverage that may help with final expenses
It's also important to understand the limitations.
Compared with other life insurance products, guaranteed acceptance life insurance often includes:
- Smaller death benefits
- Higher premiums relative to the amount of coverage
- A graded death benefit or waiting period before the full death benefit is available for certain causes of death
Understanding both the advantages and limitations can help you determine whether this type of life insurance aligns with your financial goals.
No medical exam life insurance
Some life insurance products don't require applicants to complete a medical exam. However, no medical exam doesn't necessarily mean no underwriting.
Depending on the product, applicants may still answer health questions, and the insurer may review medical records, prescription history, or consumer reports before making an underwriting decision.
Potential advantages include:
- Fast application process
- No medical exam requirement
- Simplified underwriting for some applicants
Eligibility requirements vary by insurance company and product, so not everyone who applies will qualify for coverage.
Final expense life insurance
Final expense life insurance is designed to help cover funeral expenses, burial costs, and other end-of-life expenses.
These products generally provide:
- Smaller coverage amounts
- Permanent life insurance coverage
- Simpler underwriting than some traditional life insurance products
For adults looking for modest life insurance coverage later in life, final expense insurance may be one option to consider.
Group life insurance
Some employers and membership organizations offer group life insurance.
Group life insurance may include:
- Simplified enrollment
- Limited or no medical underwriting during eligible enrollment periods
- Employer- or association-defined coverage amounts
Although group life insurance may not provide enough coverage for everyone's needs, it can offer valuable financial protection for eligible participants.
Choosing between term life insurance and permanent life insurance
If you're considering another life insurance application after being denied, it helps to understand the differences between the
two broad categories of life insurance.
| Term life insurance | Permanent life insurance |
|---|---|
| Provides coverage for a specific period | Designed to provide lifelong coverage if required premiums are paid |
| Generally provides temporary coverage needs | Generally provides long-term financial protection |
| Underwriting requirements vary by product | Underwriting requirements vary by product |
| May offer higher coverage amounts | Coverage amounts vary by product |
Understanding the differences can help you choose a product that better aligns with your financial goals and eligibility.
Coverage options after a denied life insurance application
| Coverage type | Medical exam | Health questions | Coverage amount | May be a good fit for |
|---|---|---|---|---|
| Term life insurance | Often required, depending on the product | Usually | Higher coverage amounts may be available | People seeking coverage for a specific period |
| Whole life insurance | Varies by product | Usually | Varies | Long-term financial protection |
| Guaranteed acceptance life insurance | No | Depends on the product | Generally smaller benefit amounts | Applicants who have difficulty qualifying through traditional underwriting |
| No medical exam life insurance | No | Often | Varies | Applicants looking for a simplified application process |
| Final expense life insurance | Varies | Usually limited | Smaller benefit amounts | Helping cover funeral and end-of-life expenses |
| Group life insurance | Varies | Varies | Employer- or association-defined | Eligible employees or members |
Next steps after a denied life insurance application
If your life insurance application is denied, consider following these steps:
- Review the underwriting decision carefully.
- Correct any inaccurate information.
- Ask whether you can reapply later.
- Compare life insurance companies.
- Explore different life insurance coverage options.
- Choose a product that matches your needs and eligibility.
Can another life insurance company approve you?
Yes, it's possible. A denied life insurance application from one insurance company doesn't automatically mean another insurer will reach the same conclusion.
Insurance companies develop their own underwriting guidelines based on the products they offer and the level of risk they're willing to insure. As a result, two insurers reviewing an insurance application may make different decisions.
When comparing life insurance companies, consider:
- Your age
- Overall health
- The amount of life insurance coverage you need
- Whether you prefer term life insurance or permanent life insurance
- Whether a product with simplified underwriting may be more appropriate
Eligibility and underwriting decisions will depend on the applicable product requirements and the insurer's underwriting guidelines.
Does a life insurance denial affect future applications?
Not necessarily. Life insurance applications may ask whether you've previously been denied life insurance. It's important to answer these questions honestly and accurately.
A previous denial is only one part of the underwriting process. Insurance companies may also consider your current health, age, lifestyle, prescription history, financial information, and the specific life insurance product you're applying for.
If your circumstances have changed since your previous application, those changes may also be considered during underwriting.
How to improve your chances of approval
Although approval cannot be guaranteed, there are steps you can take to make sure a future life insurance application contains current and accurate information.
Manage ongoing health conditions
If you have an ongoing medical condition, following your treatment plan and attending regular medical appointments may result in updated health information that an insurer can evaluate under its underwriting guidelines.
Life insurance companies may evaluate health information as part of underwriting, depending on the product and applicable underwriting requirements.
Stop using tobacco or nicotine products
Smoking, vaping, chewing tobacco, and other nicotine products can affect both eligibility and premium rates.
If you've stopped using tobacco or nicotine products, ask the insurance company how long you should remain tobacco-free before submitting another life insurance application. Requirements vary by insurer and product.
Improve key health measures
Health information such as blood pressure, cholesterol and weight may be considered during underwriting, depending on the insurer and product.
The significance of any individual health factor is determined under the insurer's applicable underwriting guidelines.
Apply for an appropriate amount of coverage
Requesting substantially more life insurance coverage than your financial situation appears to support may lead to additional underwriting questions.
Insurers may consider financial information and the amount of coverage requested as part of underwriting.
If you're unsure how much life insurance coverage you need, using an educational life insurance needs calculator can be a helpful starting point.
Keep your information up to date
Before submitting another life insurance application, review all of the information you'll provide to make sure it's current and accurate.
Double-check details such as:
- Medical history
- Prescription medications
- Employment information
- Tobacco or nicotine use
- Driving history
- Contact information
Keeping your information up to date may help reduce delays and avoid unnecessary questions during underwriting.
Explore products that fit your needs
If traditional underwriting has made qualifying difficult, another type of life insurance may better fit your circumstances.
Learning about guaranteed acceptance life insurance, no medical exam life insurance, final expense life insurance, term life insurance, and permanent life insurance can help you understand how eligibility requirements differ between products.
Additional educational resources include:
- Best Life Insurance for Older Adults
- Life Insurance for Older Adults With Health Issues
- Term Life Insurance
- Whole Life Insurance
Frequently asked questions
Can I get life insurance after being denied?
Yes. A denied life insurance application doesn't automatically prevent you from obtaining life insurance coverage elsewhere.
Depending on the reason for the denial, you may qualify with another insurance company or for a different type of life insurance
with different underwriting requirements.
How long should I wait before applying again?
The appropriate waiting period depends on why your life insurance application was denied. Administrative issues may be
corrected immediately, while certain health-related or lifestyle factors may require additional time before you reapply. Ask the
insurance company whether it recommends waiting before submitting another application.
Will another insurance company deny me too?
Not necessarily. Insurance companies use different underwriting guidelines, and eligibility varies by company and product.
While you may be asked whether you've previously been denied life insurance, each application is evaluated using multiple
factors.
Can I appeal a life insurance denial?
If you believe your life insurance application was denied because of inaccurate or incomplete information, contact the
insurance company to discuss the underwriting decision. In some cases, correcting factual errors or providing additional
documentation may allow the insurer to reconsider the application.
Does being denied life insurance affect my credit score?
A life insurance underwriting decision itself is not a credit account. If consumer-report information is used during underwriting,
applicable consumer-reporting rights and requirements may apply.
Is guaranteed acceptance life insurance easier to qualify for?
Guaranteed acceptance life insurance generally has fewer underwriting requirements than many traditional life insurance
products. Eligibility requirements, age limits, benefit amounts, and waiting periods vary by product, so review the product
details carefully before applying.
Bottom line
A denied life insurance application doesn't necessarily mean you won't be able to obtain coverage in the future. Understanding
why your application was denied, correcting any inaccurate information, understanding factors that may be considered during
underwriting, and exploring other life insurance coverage options can help you determine the next steps that are right for your
situation.
This article is provided by New York Life for informational purposes only. Neither New York Life, AARP, nor its affiliates provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.
