First things first – why were you rejected? This is the most important question to get answered whenever you receive a rejection notification on your life insurance application. Believe it, or not, there’s often a simple error to blame that could have been easily avoided, or there was something simple in the policy’s exclusion list that should have sent you looking for a different policy from the start.
Once you have your answer, you can begin to troubleshoot. To assist in this endeavor, I’ve listed three of the most common reasons for rejection and how you can avoid them for your next go around. You can learn more about getting your own life insurance quote http://www.suncorp.com.au/insurance/life-insurance
1. You Omitted Something OR Made a Simple Input Error –
This is one of those things that happen that make you slap your own head and go, “Doh!” – yes, just like Homer Simpson. It happens all the time, in a variety of ways, and is one of the leading reasons why you should always run any insurance application by a financial advisor, or an insurance specialist, when handling an application on your own.
After all, life insurance applications are complicated, and thorough; especially when it comes to all of their fine little print, so a few fresh pairs of eyes can be very, very useful and save you a lot of time, as well as grief.
Some common simple errors on life insurance applications, include:
- An item was unintentionally missed, and left blank
- A question was misunderstood, and therefore answered incorrectly
- Coverage requested exceeded the amount allotted for your age bracket
- Application was signed and processed from another state
- An additional signature was required, but not provided
- A P.O. Box was listed instead of a street address
These are all maddening reasons to get rejected, because they’re so easy to have caught ahead of time – either by a certified expert giving it a once over, or simply by the applicant calling in after submission to check out everything with the insurer before it goes up for review.
2. You Didn’t Apply for the Right Kind of Policy –
Typically, this mistake occurs due to medical issues – some policies don’t accept certain medical history, no matter what. If that’s the case, it’ll be listed in their exclusions. If you’re applying for one of those “no exam” type policies, you need to be especially wary of these exclusions; just because it’s no exam, doesn’t mean they don’t have exclusions and that they won’t be looking into your medical history.
This kind of rejection can be easily avoided simply by giving the fine print a thorough read-through. Unfortunately, the fine print of insurance policies can read a lot like stereo instructions, so it helps a great deal to sit down with a financial advisor and let them do the translating. While you’re there, they can also whip up a few other policies, possibly with even better premiums, that more adequately fit you and your medical history.
2. There’s a Fly in Your Medical Record Ointment –
Medical background checks, as well as a slew of other background checks, are performed by just about every life insurer on the map – it doesn’t matter if it’s a “no exam” policy, or not. They’re looking, they’re seeing, and they’re deciding based on what they find in your MIB Report (Medical Information Bureau), Pharmacy Records, and MVR (Motor Vehicle Report).
Anything and everything in those records better match what you put down on the application, or it will be declined. Even if you think you know every last little thing that is on those reports, it’s a great idea to check them out thoroughly before you send in the application. After all, human error does occur and there could be something incorrect on those records that you’re unaware of.
For a full listing and explanation of how to successfully not get rejected for life insurance, make an appointment with a life insurance specialist who can find the perfect insurance company for you and walk you through every step of the process. It’ll be faster, easier, and you’ll have an accepted application filed away, while others are still scratching their heads at rejection notices.