Declined for Life Insurance? Other Options May Exist

Life Insurance

Do you have life insurance? Recently, I heard about a young man who passed away from an illness. He left a wife, a young daughter and they were expecting their second child. This young man was only 31 but he had an underlying medical condition, which when he caught pneumonia, led to a severe infection that his body couldn’t fight. One day they were planning for him to come home from the hospital, and a couple days later his health deteriorated drastically and he passed away. Fundraisers are being held to help his family which led me to wonder if he didn’t have any life insurance – or enough of it. I also wondered, with his medical history could he have gotten life insurance?

If you’ve applied for and have been declined for life insurance, you have to think of alternate options for purchasing the needed life insurance. If you’re not insurable – what are your options? Here are a few:

  1. Guaranteed Life insurance
  2. Survivorship Life insurance
  3. Group Life insurance

There are insurance companies that offer guaranteed issue life insurance and the insurance amount limits are usually low – usually up to a maximum of $50,000.

A survivorship life insurance policy is an option if you’re married or in a committed relationship and you each have an insurable interest in each other. This might be an option if the second insured is healthy.

Group life insurance may be available through your employer which is usually a multiple of your annual salary. If you’re a member of a union, the amount may be a flat amount vs. a multiple of salary. Some employers also offer additional voluntary life insurance through their group insurance program, which can be guaranteed issue as well as completely portable, if you leave their employment. Your bank or credit union might offer term life insurance as well.

About the author: Melanie Tretheway has been in the life insurance business for over 30 years. She is a mother of two who loves baking, reading, gardening, and taking care of her family. Melanie takes great pride in making sure you are informed, especially when it comes to choosing the right life insurance policy for your family. You can contact Melanie at 1-800-651-1953 or MTretheway@Pivot.com.