Part of estate planning is to ensure you have the right insurance in place to accomplish your overall goals. For many this may include having the right amount of life insurance to cover certain liabilities or help care for dependents. What should you do if you apply for life insurance and get denied?
You may fall into the “impaired risk market,” which means you have something in your background that makes you a higher risk for dying prematurely such as history of stroke or heart disease, obesity, a previous cancer diagnosis or even a history of DWIs.
First Step: You have a right to the information collected on you by the insurance company to determine your risk level. Ask the company to provide you with a copy of your file. Make sure the information they have on you is accurate and current.
Second Step: Compile accurate information and apply to other companies. Each life insurance company adheres to its own set of underwriting guidelines, meaning identical applications to separate carriers could yield different results.
Third Step: If you have some type of pre-existing condition that prevents you from qualifying for typical life insurance policies then as a last resort you may need to look into “graded” or guaranteed products that make life insurance possible for those with unfavorable risk profiles. While they cost more and typically come with maximum death benefits, these types of polices may be a solution for you.
For assistance with comprehensive estate planning including insurance needs, please contact Stouffer Legal at 443-470-3599 in the Greater Baltimore area.