Part of estate planning is to ensure you have the rightinsurance in place to accomplish your overall goals. For many this may includehaving the right amount of life insurance to cover certain liabilities or helpcare for dependents. What should you do if you apply for life insurance and getdenied?
You may fall into the“impaired risk market,” which means you have something in your background thatmakes you a higher risk for dying prematurely such as history of stroke orheart disease, obesity, a previous cancer diagnosis or even a history of DWIs.
First Step: You have a right to the information collected on youby the insurance company to determine your risk level. Ask the company toprovide you with a copy of your file. Make sure the information they have onyou is accurate and current.
Second Step: Compile accurate information and apply to othercompanies. Each life insurance company adheres to its own set ofunderwriting guidelines, meaning identical applications to separate carrierscould yield different results.
Third Step: If you have some type of pre-existing condition thatprevents you from qualifying for typical life insurance policies then as a lastresort you may need to look into “graded” or guaranteed products that make lifeinsurance possible for those with unfavorable risk profiles. While they costmore and typically come with maximum death benefits, these types of polices maybe 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.
