Your Options if You Are Denied Life Insurance

Being denied life insurance is frustrating, and can often feel discouraging, but it’s not the end of the road. At Dragonfly Crowd, we specialise in helping individuals navigate this situation and find the right coverage following rejection.

The first step is to understand the reason behind your denial. It may be due to health, lifestyle, or financial factors, but knowing what went wrong allows you to take corrective action and improve your chances of approval

Can you be refused life insurance?

You can be refused life insurance, whether it’s group life insurance, small business life insurance, or another type of life insurance. Each insurer has the right to decline your application if they consider you to be ‘high risk.’

A denial doesn’t mean you’re out of options though. With expert guidance from Dragonfly Crowd, many applicants are able to successfully reapply, or appeal the original decision.

You can learn more about life insurance eligibility in our dedicated blog.

Common reasons life insurance is denied

Here are some of the most common reasons for life insurance being denied: 

• Incomplete or inaccurate information – Misrepresentation of your health history or lifestyle can lead to rejection.

• Pre-existing health conditions – Many pre-existing health conditions, even if well managed, can lead to denial or increased premiums. 

• Age – As you get older, denial becomes more likely for many types of policies. However, tailored policies are still available!

• Financial instability – Poor credit history might raise concerns around premium payments. 

Good news! With the right advice and strategy, these challenges can often be addressed, allowing you to get the right plan even after facing rejection.

What to do if you are denied life insurance

If you are denied life insurance, you should take the following steps: 

1. Request feedback from the insurer to understand the reason for rejection.
2. Review your application for errors or missing details.
3. Appeal the decision or reapply with updated information.
4. Work with a specialist like Dragonfly Crowd to strengthen your application.
   

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What to do if you are denied life insurance due to mental health

If you’re denied life insurance due to mental health, it might be because of a lack of information, or because there has been a recent increase in the severity of your condition. 

Unfortunately, you may have to wait some time before your application is considered, as you may be considered ‘high risk’ to insurers. 

What to do if you are denied life insurance due to medical conditions

Mental health rejections are often due to recent changes in your situation, or lack of documentation. In this case, working with your doctor to update information can increase your chances moving forward. 

If your application was denied as a result of conditions which can be improved in some cases (such as high blood pressure), lifestyle changes will improve your eligibility. 

What other life insurance options are there if you are denied?

If traditional life insurance isn’t an option for you, there are still options for you to consider:

• Group life insurance through your employer is often much easier to qualify for, with a much simpler vetting process.
  
• Life insurance for large or small businesses is also an option. If you own your own company and want to secure a life insurance policy this way, you might have a better chance if you’ve previously been denied.

Speak to an expert insurance intermediary to explore your options. 

Contact Us to Discuss Life Insurance Options

Are there any lifestyle changes that can be made to help secure life insurance?

Lifestyle changes can have a huge positive impact on life insurance applications. Here are a few major lifestyle changes which might improve your life insurance acceptance chances:

• Quit smoking – You usually need to consider stopping smoking for 12 months before you’re considered a ‘non-smoker,’ but achieving this can elevate your chances of securing life insurance. 

• Weight management – Managing this issue reduces premiums and benefits your overall health. 

• Limit alcohol consumption – Excess alcohol consumption can cause risk of liver disease, heart problems and many other health concerns. 

• Regular exercise – Exercise can support heart health and lower risk. 
  

At Dragonfly Crowd, we believe everyone deserves access to life insurance. Whether you’ve been denied or are unsure where to start, our team is here to help.

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