Providing your loved ones with a safety net is something that most people want, it can get frustrating when you are denied a cover to protect your loved ones.
Knowing the reasons why you have been denied and what to do after is important. Here is what you need to know.
Reasons why an insurer can deny your policy
There are a couple of things that insurers look at to determine if you will be able to qualify for their cover or not. This is known as underwriting, where you will be asked a range of questions regarding your health, lifestyle, age and gender. There are also exclusions, which are the terms and conditions of life insurance of things that they will not cover. These need to be read carefully. Some of the reasons why an insurer can deny you a policy are:
You are severely sick before taking out a policy. This could be someone who has Aids or is terminally ill. Other health conditions such as Hepatitis, elevated cholesterol or blood sugar levels can cause your application to be rejected.
You have a dangerous occupation that increases the chances of you sustaining an injury or death.
You do not have insurable interest which means you are unable to make the monthly payments of your premiums.
You have provided false information or left out vital information that can prevent your insurer from giving you suitable cover.
Dangerous lifestyle choices such as excessive drinking, smoking or eating an unhealthy diet that can compromise your health.
Ask why your application has not been accepted
Having your application rejected can be disheartening. More so, when you want to have peace of mind that your loved ones will be taken care of when you are no longer around. Not all is lost should an insurer turn you down.
What you could do is ask them why your application has not been accepted. This can reveal the problem areas. For example, if you are denied a policy due to lifestyle habits such as excessive drinking or an unhealthy diet – you can fix this before applying for cover again.
If it’s because you have a dangerous occupation or a pre-existing medical condition, you could consider searching for an insurer that will be able to provide you with cover tailormade for your needs.
Did you tell the truth?
Not disclosing truthful information or leaving out information can come back to haunt you. However, we are human at the end of the day and genuine mistakes can happen. There are some cases where someone misunderstands a question or forgets to disclose certain information. Should something like this happen, it is important to inform the insurer or ask them to elaborate on the question that they are asking you so that you answer correctly.
Under no circumstances is an insurer allowed to discriminate against you because of your race, sexual orientation, or lifestyle choices that fall outside of their exclusions. Remember that you can ask your insurer why you were not approved and how you can improve your chances next time you apply.