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Declined for Life Insurance?

You might think that being declined for life insurance means the end of the road, but you should actually look at it as a lesson learned. A decline simply means that the particular company you applied for considers you to be too much of a risk. The good news is that there are hundreds (actually more than 2000) of life insurance companies, and they all have different underwriting requirements. So if one company declines you for diabetes or high cholesterol, then the chances are very good that there is another company that will approve you.

Buying life insurance should be a strategic decision. Because life insurance carriers have different criteria, you have to make a strategic choice when applying. Some companies want you to be in picture perfect (or near perfect health) to be approved for good rates. Other companies offer standard rates for people who have health issues. That's why it is so important to work with an experienced agent because he or she can guide you towards the company that is best for you. A knowledgeable agent should be able to get you approved the first time around if you are upfront with them about your situation. When I say "situation" I mean your health, family health, smoking status, driving history, criminal history, and occupation and hobbies. These are the kinds of things that life insurance underwriters look at when determining whether or not they are going to offer you coverage (and at what rate).

Let's take a look at a couple of scenarios. Let's say that you have type 2 diabetes that is well controlled and you also have a DUI on your driving record from three years ago. The pool of life insurance companies that will approve you shrinks considerably, but there are companies who will offer you coverage. Or maybe you battled breast cancer two years ago and you are now in remission. Your options for life insurance are very decreased, but there are some companies that will offer you life insurance coverage under certain terms.

The lesson here is that if you have been declined for life insurance then you should know that you didn't make the most strategic decision when applying, whether alone or with the help of an agent. Lay all the cards on the table with an experienced agent and you shouldn't have a problem getting approved the second time around.

Start by comparing rates from several top carriers. Rates and underwriting criteria vary from one company to another, so it definitely pays to compare.

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