3 min read
Why do people get refused life insurance?
Life insurance providers assess risk each time they consider a new application. When you apply, they’ll look at things like your age, health, lifestyle, occupation and medical history. If they believe you're a higher-than-average risk to insure, they might charge you higher premiums, offer a policy with exclusions, or delay making a decision. In some cases, they may decline your application altogether.
Common reasons for refusal include:
Serious or recent health conditions, such as cancer, heart disease or uncontrolled diabetes.
High-risk jobs or hobbies, like working offshore or skydiving.
A recent history of serious mental health issues.
A poor driving record or criminal convictions.
Naturally, it can feel personal if you are refused life insurance. But please remember that it’s an assessment of statistical risk, and not a judgment of your worth as a person.
What happens next?
If you've been turned down for life insurance, here are some steps you may wish to take:
1. Understand why you were declined
The insurer should tell you why they declined your application. If the reason isn’t clear, ask for a detailed explanation. Knowing what triggered the refusal may help you find an alternative.
2. Double-check your application
Did you leave anything out or make a mistake? Insurance companies rely heavily on the information you give them. If your application wasn’t accurate (even accidentally) it could be flagged as high risk.
3. Try a specialist broker
There are life insurance brokers who specialise in ‘impaired risk’ or ‘non-standard’ cases. These experts work with insurers who are more flexible with certain medical conditions, occupations or lifestyles.
4. Work on risk factors within your control
If your health or lifestyle was a factor in the refusal, consider making changes. For example, quitting smoking or alcohol, losing weight or managing a chronic condition like high blood pressure might improve your chances of getting accepted in the future.
5. Consider a different type of policy
You might not be eligible for traditional life insurance, but that doesn’t mean all cover is off the table. Alternatives include ‘no medical’ life insurance. One of the most common examples of this is over 50s life insurance.
These ‘guaranteed acceptance’ policies are typically available without any medical questions, underwriting or medical examination. However, they can be more expensive than other insurance and may be more restricted in terms of how much cover you can get.
Another option might be accidental death cover. These policies pay out only if you die in an accident. It’s not full life insurance but can be better than nothing.
How a refusal affects your future applications
A refusal doesn’t automatically mean you’ll always be declined. But it can be a flag that future insurers take note of, especially if you apply shortly after being refused elsewhere.
If you have been refused cover and wish to apply again in the future, consider using a specialist broker who can help match you with an insurer who may be more likely to accept your application.
Whatever you do, you must be honest when asked about previous refusals. Not disclosing it could invalidate any future policy.
Final thoughts
Being refused life insurance is a setback, but it may not be a dead end. There are still options, and with the right advice and perseverance, you may be able to find cover that works for you.