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

In Part Two, we discussed a very commons reason for why people get declined for life insurance: Unexpectedly bad labs.

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

Lack of full disclosure.

A life insurance underwriter needs to know all the mortality risks posed by an applicant, in order to fairly and accurately assign a premium. The answers to the questions on the application, and in the phone interview, are a key source of this information.

Therefore, the applicant must answer these questions truthfully and completely. This may not always be easy. Many people can feel uncomfortable talking about their problems and issues. Psychiatric treatment… suicide ideation… weight gain… intestinal disorders… bankruptcy… criminal incarceration… addictions… anxiety….are among the many topics about which people have trouble sharing.

If they don’t go through full disclosure, the underwriter will still probably find out anyway, from physician records or other databases. If that happens, the applicant could be declined for lack of trust. At the very least, there could be delays in getting an approval, and the premium could be much higher than quoted.

it is the job of the broker to help the applicant feel comfortable and confident disclosing all information needed for underwriting. That will make Prequalification the safe but effective process it is designed to be for shopping for life insurance.