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Hard-to-place life

Declined for life insurance?

A decline is not the end of the conversation. It is one carrier, applying its own rules, on the day it read your file. Another carrier reading the same file can reach a different answer, because underwriting rules are set company by company rather than industry-wide.

Declined, rated and postponed are three different things

  • Declined. No policy at any price right now.
  • Rated. Coverage offered above standard class. That is an offer, not a refusal.
  • Postponed. The carrier wants to wait for a result, a treatment, or a set period.

A postponement has a date attached. A rating has a price attached. Only a flat decline has neither.

Tell us about your case

Someone reads this by hand. The decline question is optional.

Cigarettes, cigars, vaping, chew and nicotine patches all count. It is a rating question when you tell us and a much bigger problem when you do not.

Tick as many as apply.

Pick at least one to continue.

If you know the reason, telling us here saves the most time. Which carrier, roughly when, and what they said. Leave it blank if you would rather talk it through instead.

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This page is general information, not insurance advice, and it does not change any policy. Underwriting rules, products and availability vary by carrier and state. See our disclaimer.

What usually triggers it

None of these close the door on their own. They change which carriers are worth approaching.

That last one matters more than people expect. A decline is reported to the MIB, an industry database carriers check, so reapplying without addressing the reason tends to produce the same result faster.

Routes that stay open

Which of these fits depends entirely on why the first carrier said no.

A different fully underwritten carrier

The most common answer, and the one people skip. Build charts, medication lists and diagnosis waiting periods differ widely between companies. One carrier’s automatic decline is another’s rated offer.

Simplified issue

Health questions, no medical exam, no fluids. Faster, and it clears applicants whose paperwork rather than health was the obstacle.

Guaranteed issue

No health questions and no exam. Acceptance is not conditional on your medical history. Face amounts are smaller and there is usually a waiting period before the full benefit applies.

Graded death benefit

Pays a reduced amount, often a return of premium plus interest, if death occurs during the first two or three years, then the full amount after.

Final expense

Smaller whole life policies built for funeral and burial costs, underwritten far more loosely than a large term policy.

Group coverage at work

Employer plans are usually guaranteed issue up to a limit, with no individual underwriting at all. Worth checking before you shop anywhere else.

A policy on a different life

If you were applying to protect a business or a loan, the answer may be insuring a partner or restructuring who owns the policy.

What to do before applying again

Applying again immediately, to a carrier picked at random, is the most common mistake after a decline. Each application adds another entry to the file the next underwriter reads.

  1. 1

    Ask for the reason in writing

    Carriers will tell you. You cannot fix or work around a reason you have not been told.

  2. 2

    Check the file the decision came from

    You can request your MIB record and your prescription history report, and both are correctable if wrong.

  3. 3

    Fix the fixable

    A missing test result, an out-of-date note from a doctor, or a condition now under control all change the picture.

  4. 4

    Wait if waiting is the answer

    Many conditions have a defined look-back. Applying inside it produces a decline that then sits in your record.

  5. 5

    Match the carrier to the reason

    A carrier lenient on build may be strict on driving record. This is where it helps to have somebody who places these regularly.

Being honest on the application

Do not leave anything off to improve the odds. Medical, prescription and motor vehicle records are checked, and an omission found later is worse than the condition itself: it can void the policy during the contestability period, when the claim is the thing that gets denied rather than the application.

The same goes for tobacco. Occasional cigars, vaping and nicotine replacement all show up on a fluid test, and there are carriers that price them differently from cigarettes. Disclosed, it is a rating question. Undisclosed, it is a rescission question.

Frequently asked questions

Does being declined once mean I cannot get life insurance?

No. A decline is one carrier applying its own underwriting rules to your file on that day. Rules are set company by company rather than industry-wide, so another carrier reading the same file can reach a different answer. There are also products, such as simplified issue and guaranteed issue, where the questions that produced the decline are not asked.

What is the difference between declined, rated and postponed?

Declined means the carrier will not offer a policy at any price right now. Rated means you were offered coverage at a higher class than standard, which is an offer rather than a refusal. Postponed means the carrier wants to wait, usually for a treatment to finish, a test result, or a set period after a diagnosis or surgery. A postponement has a date attached; a rating has a price attached.

Will a decline follow me to other carriers?

A decline is reported to the MIB, an industry database that member carriers check when you apply. It does not automatically stop another carrier from offering coverage, but it does mean the next underwriter sees that a decision was made. Reapplying without addressing the reason tends to produce the same result faster.

Should I leave the condition off the next application?

No. Medical, prescription and motor vehicle records are checked, and an omission found later is worse than the condition itself. It can void the policy during the contestability period, which is the point at which the claim gets denied rather than the application. Disclosed, it is a rating question. Undisclosed, it is a rescission question.

What is guaranteed issue life insurance?

A policy issued without health questions or a medical exam, so acceptance does not depend on your medical history. In exchange, face amounts are smaller and there is generally a waiting period, often two or three years, before the full death benefit applies. It is a genuine answer for somebody who cannot be underwritten, and an expensive way to buy coverage for somebody who can.

Does vaping count as tobacco use?

Generally yes. Vaping, cigars, chew and nicotine replacement all show up on a fluid test, and carriers treat them differently from one another. Some price occasional cigars closer to non-smoker rates. Disclose it either way, because the test will find it.

How long should I wait before applying again?

It depends entirely on why you were declined. Some reasons have a defined look-back period, and applying inside it simply produces another decline that then sits in your file. Others, such as an error in your prescription record or a condition now controlled, can be addressed straight away. Ask for the reason first, then decide.

Healthy and straightforward? Compare term and universal life instead, where you can apply online and often get a decision the same day.

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