If denied Insurance Coverage do follow these steps

If denied Insurance Coverage do follow these steps

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Insurance Coverage: First of all, you don’t have to be disappointed If you were denied a policy by the company you applied to. I know we humans are not quite adept at handling rejections be it from your crush or your friends. Well, human relations are complicated in their own rights but Insurance policies not quite so. Every Insurer has some underwriting guidelines which differ from one another.

Pre-existing conditions, which you may be required to report during the underwriting process or which may later be found in your medical history or during your paramedical test, are among the most common reasons for the denial. Underwriting is a method used by life insurance providers to decide not only how high your insurance rates will be, but also whether you’ll be eligible for coverage at all. Pre-existing conditions can necessitate a higher insurance premium, the purchase of a guaranteed-issue policy, or the acceptance of a lower death benefit.

So if were denied by a company it doesn’t necessarily mean you won’t be accepted by any other company either. You can also go for alternate policy programs with similar insurance benefits.insurance coverage, insurance, aviva, canada life, insurance near me, car insurance near me, insurance agency, auto insurance near me, commercial truck insurance,

Here are the few steps that you can follow to have better chances of getting accepted when you apply next

1) Consult Your Insurance Broker:

If your application for life insurance is turned down, the first thing you can do is contact your life insurance agent or broker. When telling customers that their application has been denied, life insurance firms usually notify their broker first, then give the shopper a letter.

In most cases, the insurer will explain why the application was denied. If the insurer doesn’t provide you with the details of denial you can request the same that is your right. Your broker will then assist you in analyzing the decision and strategizing the next steps. Fortunately, you can reuse the medical test from your first application. In this way when applying to another life insurance firm, you can save yourself a few weeks.

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Insurance firms often do not refuse the application directly, but instead postpone it to a later date, normally six months to a year later. For example, If you have a recent medical condition, the insurer will usually give you a full year to adapt to any new drugs or symptoms before checking in with you to decide upon the continuity.

Though It can get a bit complicated if the application is delayed for other reasons, such as if you’re healing from drug or alcohol addiction. However, you can normally reapply after a period of time and when your medical test results have improved.

3) Alternate Insurance Coverage Options:

If a life insurance provider considers you a high-risk customer, you can still obtain coverage by buying a different type of life insurance. These are no-exam life insurance plans, but their coverage may be low and limited. But as the saying goes “something is better than nothing”.

Simplified-Issue Life Insurance:

You’ll be able to avoid the paramedical test if you go for simplified-issue life insurance coverage. But this doesn’t mean you won’t have to talk about your medical problems, because the underwriter will always look at your medical history. However, this type of coverage is often more costly than conventional insurance. You’ll have to pay significantly higher premiums for the same amount of coverage than a conventional term life insurance policy. Furthermore, most simplified-issue plans only cover up to $100,000 in coverage.

Guaranteed Issue Life Insurance:

Guaranteed-issue life insurance, also known as “guaranteed-acceptance” life insurance, does not require any underwriting. That means you won’t be doing a medical test or have your medical history checked. You’ll always be asked about your wellbeing, and lying about it will result in the same penalties as lying in any other life insurance plan. Guaranteed-issue life insurance is not only more costly, but it also has a lower death payout. It usually ranges from $10,000 to $50,000. However, if you’re out of options, guaranteed-issue life insurance might be a good alternative.

Final Expense Life Insurance:

In final expense life insurance also known as Burial insurance in the market, policyholders are expected to pass away prematurely. Final expense insurance usually only covers funeral expenses. Even so, if you can bear the high premiums, it can relieve a massive burden off your loved ones’ shoulders.

Thank you for reading this article on If denied Insurance Coverage- follow these steps. If you found this article helpful share it with your friends and family. It can help them clear their doubts and raise awareness on the topic. For any queries, you can connect with us via mail at aip@akaninsurance.ca