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Life insurance is not always guaranteed. There are times when applications are denied and cover is not provided. It may due to a lack of information, previous health conditions or due to your occupation. In the end, it's about the risk your lifestyle poses to the insurer. If it's extremely likely that you will make a claim in the future, your insurance may be denied.
If you’ve been hit with a life insurance denial, there’s probably one question on the tip of your tongue: Why? The reality is that there are myriad reasons why a life insurer might deny your application for cover. Let’s take a closer look at some of the most common reasons and what your options are if you’re ever denied life insurance.
The most common reasons for a denied life insurance application have to do with the applicant’s health. Some of the common medical issues that insurers could baulk at include:
Your life insurance application may also have been denied for a reason that has nothing to do with your health, such as if:
If your life insurance application has been rejected, there's still a few things you can do to find the cover you need:
You have the right to know why your application was rejected. It may include your occupation type or because of medical exams. It's entirely possible that a mistake was made or a condition like smoking that can be addressed. Always run any medical records used for denial past your doctor for a second opinion. You may be able to prove some initial test results were incorrect or that your condition is manageable.
A qualified life insurance adviser can help you find a different provider who may offer you insurance where another has denied you. Keep in mind they will only be able to help if the reason for denial is one that another provider will accept. If you have diabetes, for example, you may still be out of luck.
Because superannuation funds insure large amounts of people all at once, they're often willing to insure people who might be viewed as too risky by other insurers. If you can't get life insurance through a regular provider, see if your super fund will cover you.
If you have been denied cover in the past, or you think it likely you will be denied in the future, it can be helpful to speak to an insurance broker. A broker will be able to help you navigate insurance brands and offer you the best shot of successfully taking out cover. Fill out the form below to speak with a broker.
An adviser can help you find cover from trusted life insurance brands.
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