Refused life insurance?

The most important thing when arranging life insurance is to ensure that you're open and honest about all aspects of your life, regardless of how unfavourable they may seem.

Altering information or failing to supply certain details is known as non-disclosure.

This can lead to your policy being invalidated and a pay out being denied, resulting in your selfless investment going to waste.

If you've previously been refused life insurance, all is not lost.

In this instance, the best thing to do is to get in touch with a life insurance broker who can provide you with more options and insurers most likely to accept your application.

There are a wide number of life insurance types available, including term life insurance, whole of life insurance and an over 50s plan.

Whilst each is better suited to protecting certain aspects within your life, they're also better suited to different types of applicants.

For example, an over 50s plan only takes into account your age, cover amount and smoking status.

Therefore, if you suffer severely from your health or substance misuse but are within the age range 50-85, this may be a better-suited type of policy for you as none of the high-risk factors will be taken into account.

Equally, if you're younger but suffering from a pre-existing condition, term life insurance may be more suitable than whole of life, as the latter premiums would be significantly more expensive due to a guaranteed pay out.

Discussing your options with a broker, such as Reassured, will provide you with all of the information you need to make an informed decision on the best solution.

As discussed, an over 50s plan has very little criteria to pass in order for your application to be accepted.

The only requisite is that you're a UK citizen, aged between 50-85 years old.

Therefore, if you're looking for life insurance that won’t turn you down, this may be the way to go.

Although, it’s worth noting that the older you are the higher your monthly premiums and the overall sum assured available is significantly lower than other forms of life insurance.

If looking to secure a significant sum assured (above £25,000), it may be best to compare other types of life insurance, even if it means going with a specialist provider.

Get in touch with our team, who can discuss your needs and provide you with all the information required to determine the right option for you.

One of the most likely reasons for being declined life insurance is due to your medical history.

Each medical ailment is considered differently, with many pre-existing conditions not affecting your chances of getting cover or the cost of premiums.

In many instances, if your medical condition is well managed and not life-threatening, you're likely to be able to secure standard terms of cover, although premiums may be inflated to mitigate the insurers' risk.

In the instance of a newly diagnosed medical condition, it's likely your application will be deferred to allow the insurer to determine how the illness will progress over time.

This is also the case for recent major operations, as the life insurance provider will want clarification on your recovery before accepting your application.

As discussed, if you have previously been declined life insurance on medical grounds, you may wish to consider an over 50s plan which doesn’t take into account any information regarding your medical wellbeing

Although it's worth noting, most over 50s plans implement a waiting period at the beginning of a policy, for which you must outlive for cover to be valid (usually 12-24 months).

To understand how your particular medical condition will affect your likelihood of being accepted contact our team today to discuss your individual case.

The excessive use of drugs and alcohol is likely to lead to a refusal of life insurance due to the associated risks of this behaviour.

While each case and intake will be assessed on an individual level, it's likely that extreme use will result in a decline of application.

However, it's worth noting, that the thresholds considered by most insurers are higher than those considered a recommended intake by the medical industry, with most adults consuming 40 units of alcohol a week being able to secure life insurance on standard terms.

If you've previously been refused life insurance due to your substance misuse, it's likely your application won't be reconsidered unless your habits change significantly over a sustained period of time.

To understand how your substance use will affect your likelihood of securing cover, contact our team today.

^*£24.49 per month pricing includes a £125 discount only available to Co-operative members and is based on a 50-year-old purchasing a Co-operative Silver Funeral Plan at £3,870 over the maximum term available of 25 years (total amount repayable £7,347.90) as of 1st March 2021