There is hope for people who have been declined for life insurance – part six

There is hope for people who have been declined for life insurance – part six.

In Part Five, we discussed a very common reason for why people get declined for life insurance: Lack of medical follow-up.

In Part Six we will bring to light a different problem:

Incriminating misinformation

Life insurance companies access many databases when they underwrite applicants. These include databases with information on your prior insurance applications; the prescriptions you purchase; your medical insurance claims; your driving record; your credit record; your criminal record; and of course, your physician records.

Do these files contain thorough and accurate information, for the most part? Yes.

Can they also contain erroneous information? Yes.

We have all heard horror stories about hacking, technical bugs, human errors, and other mishaps that can cause huge problems for us. I will share with you just one.

A gentleman once applied for life insurance with me. It was for a lot of coverage, for a big premium. The underwriter obtained a copy of his medical records, and then declined him immediately. The reason: a history of drug abuse, that was never mentioned in the application.

I informed my client. He went ballistic. Claimed he never did drugs in his life. He got a hold of his doctor right away to get to the bottom of this. The cause: a nurse had mixed the records of another patient – a drug abuser – with his file. It was simply a filing error.

Everything was straightend out, and my client got his policy. But what an aggravation it was.

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