Declined for Life Insurance? Here Are Your Options

declined for life insurance

Life insurance is an extremely important purchase that you need to make for your family. Without it, they could be left with thousands of dollars of debt, and no way to pay for all those bills.

So you’ve gone through the whole process of applying for life insurance and get that frustrating decline letter and phone call – now what do you do?

If you’ve been denied insurance coverage, you know that it can be a confusing and helpless feeling. You have no idea what you should do next. Should you apply with a different company or just go without life insurance? There are dozens of different questions running through your head. If you want to know our thoughts you can check out these reviews, AARP Life Insurance Review or our State Farm Life Insurance Review.

No matter what amount of life insurance you are looking for, we can help. Even if you are interested in knowing how much is costs to get a million dollar life insurance policy, we can show you.

The biggest misconception for high risk consumers that have been declined for life insurance, is there are no other options out there. More often than not, the agent you applied with just used the wrong life insurance company.

If you’ve been declined, don’t think that you have to go without life insurance. There are still several options to get you affordable life insurance coverage.

You see, every life insurance company underwrites your health situation differently. Just because company “A” declined you, doesn’t mean the next company you apply with won’t approve you. Each life insurance company has their underwriting niches.

We’ve been helping higher risk consumers who’ve been declined for life insurance since 2005. We’ve seen it all and are high risk life insurance specialists.

If you’ve been declined for life insurance, here are your options.

1. Apply With A Different Company

Don’t let a previous decline deter you. If you have your health issues under control and you’re compliant with your doctors recommendations, we can find a company who will insure you.

Working with a truly independent life insurance agency is the key here. You need access to every life insurance company. On top of that, you need access to a high risk life insurance specialist with this access. Independent life insurance agents work on behalf of the consumer (you) and not any specific life insurance carrier.

The benefits of working with an independent agent, like ours at The biggest advantage is that we have experience working with dozens of different insurance companies and understand which ones are going to give you the best chance of being approved for coverage. For example, if you are a diabetic and want to know if diabetics can get life insurance, and have your condition managed, we know the companies that few diabetics more favorably and are going to give you the best rates available.

Aside from helping connect you with the best company for your situation, our independent agents are going to save you both time and money. If you plan to go through the purchasing process yourself, you could spend days or even weeks calling different agents.
However, if you DON’T have your health issues under control, you’ll have to opt for a graded death benefit policy.

2. Try a Graded Death Benefit Policy

Graded death benefit policies don’t require a medical exam. Just a short application with a series of health questions. These health questions are very lenient though.

The term “Graded” means there will be a waiting period before the full death benefit kicks in. Usually 2-3 years. During the first 2-3 years, if something (god forbid) happened to you – the life insurance company would refund your premiums + interest OR….give you a percentage of the full death benefit. However, after 2 years you’ll have full coverage.

Graded policies are more expensive than traditional policies. This is the main reason why people don’t buy this coverage. However, some coverage is better than none when it comes to protecting your family – so most people just lower the death benefit they’re looking for to make it work within their budget.

Graded death benefit can come in the form of “graded term life insurance” and “graded whole life insurance”. Most people opt for graded whole life insurance since the premiums are promised to remain the same and it builds cash value. Although the graded term life insurance is a little less expensive, it’s tough to pay that much for life insurance without any guarantees or cash value accumulating.

There are dozens of insurers in the business that have “graded” life insurance policies, so you’ll want to compare these rates as well.

However, if you can’t qualify for a graded death benefit policy, you’ll have to look at guaranteed issue life insurance.

3. Look at Guaranteed Issued Life Insurance

This is your last resort to purchase life insurance coverage. Guaranteed issue life insurance policies only require you to be a US Citizen and have an address in the US.

These policies work the same as graded death benefit policies mentioned above.  They’re just more expensive and have limits on the amount of coverage you can buy.   For the best guaranteed issue options, we wrote an in-depth article here. These policies will cost you more every month, but you can put a price tag on all the peace of mind that having insurance coverage will give you. Life insurance is really the only investment that will forsure give your family the cash needed for the future. If you can’t afford any of these options, you’ll have to go naked.

4. Go Naked

If you absolutely have to go without coverage, you should let your family know so they can prepare to pay down any last debts and be prepared for other final expenses.

It’s a tough conversation, but you don’t want to leave your loved ones with a financial burden without ample notice. That shouldn’t be the last memory they have of you.  Let them start preparing. Maybe they’ll pitch in for the life insurance?

Declined for Life Insurance?  Why You Should Consider Us

We specialize in high risk life insurance. Always have, always will. We have helped thousands and thousands of applicants that thought they could get life insurance, but we help them find affordable options.

Since 2005, we’ve built our own proprietary database of underwriting niches based on past approvals and conversations with underwriters. We know what companies are the most lenient for virtually every health issue.

In fact, agents from around the nation call us for our advice on their declines.  Why not go straight to the source?

On top of that, we offer a FREE pre-qualification service. No more guessing IF you’re going to be approved or not.

Getting Cheap Term Life Insurance

Aside from working with an independent agent that is going to help you get approved, there are a couple things that you can do to get lower insurance rates and increase your chances of getting coverage. The best thing you can do is follow your doctor’s orders and safely manage your health condition, whatever that condition is.

Aside from any health complications you have, you also need to improve your overall health. Sticking to a healthy diet and getting regular exercise can work wonders on your health, which will translate into lower insurance premiums.

Additionally, if you’re a smoker, take the time to kick that habit before you apply for insurance coverage. If you have any pre-existing health complications, being a smoker is going to cause your rates to go through the roof, and drastically decrease your chances of being approved for coverage.

Bottom Line

We know your intentions are to protect your family and that hasn’t changed. But, we also know that trying to find the perfect insurance policy can be a long and frustrating process. We understand that and we are here to make the whole thing easier, but start to finish.

We’ve been helping higher risks secure affordable life insurance so long, that a previous life insurance decline doesn’t even phase us. We rely on our knowledge of impaired risks daily.

We encourage you to leverage this knowledge and see what we can do for you. If you have any questions about life insurance, or would like to get the process started, please contact us today or fill out the quote form.

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About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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