Have you been declined for Life Insurance?

Why Insurance companies decline

Whilst insurance companies are profit-making businesses, they are genuinely not in the business of declining people for no good reason. If you are reasonably healthy, your application should sail through the underwriting process.  This is the process by which applications are assessed in terms of risk – how likely is it that an applicant will claim their policy? To stay in business, insurers must strike a balance of incoming insurance premiums and outgoing claims payouts.

Unfortunately, insurers do sometimes decline applications and the reasons why usually fall into the following categories:

  • You’ve got a health condition- If it’s mild, this shouldn’t be a problem. If it’s a moderate condition, you should still be able to obtain cover, but may have to pay a raised premium which takes into account the higher risk that you pose to the insurance company. If it’s a serious condition, the insurer will have to assess how risky it is to insure you, and this is when cover may be declined
  • You’ve asked for a hefty amount of insurance that doesn’t really make sense. If you’re earning £20,000 a year, it isn’t likely that you would require insurance cover worth several million pounds. Life Insurance is intended to be used as a replacement for the income or asset that you potentially could lose, so we will always advise you on a suitable level of cover before the application process begins

Life Insurance claims aren’t turned down very often, but when they are, there’s usually a good reason for it.

In 2019, the insurance industry paid out more than £5.7bn in protection claims. According to the Association of British Insurers (ABI), this was a marked increase of more than £470m compared to last year. The percentage of claims paid in 2019 was 98.3%, the highest ever on record.

What you can do

If you have been declined for either one or a handful of reasons, you can request more information from the insurer as to why.

Whether you’ve applied through your bank or directly to an insurer, speak to us.  We are experts and have experience and knowledge of individual insurers criteria.  Undoubtedly, we will have worked on similar cases in the past and can best advise you on the most suitable insurers to approach.  We also have access to specialist insurers who are not available to the general public.

Every insurer has its own underwriting guidelines and will therefore view all medical issues differently. We can match you with the right insurer for your condition, which will give you a better chance of obtaining cover.

Our Process and advice

At Future Proof, we have access to specialist insurance companies that don’t deal directly with the public. These companies offer more specialised policies, designed to provide cover where other major providers can’t.

Our research process involves us contacting many insurers to find out the best possible outcome for our clients. Which avoids any nasty shocks later on during the underwriting process.

Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk). Or, exclude a condition?

Might they decline the application? We want to avoid wasting time by making applications that may be declined.

We have up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK. Future Proof is committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs.  You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof


Jon’s moving story – being diagnosed with cancer

The protection industry pays out over £5.7bn in claims in 2019

What questions will an adviser ask me?

Will my claim be paid?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will endeavour to help someone arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

Links to third-party websites exist for information only, and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.

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