Advice for people who have been denied Life Assurance cover

Monday, July 12, 2010

With online and instant quotation decisions readily available for people seeking to obtain life insurance cover for themselves, it can happen that some potential customers may get turned down for cover. This occurs when an insurance company feels that the prospect of providing insurance cover will cause them undue expense in the event of a payout of compensation or benefit.

However, being turned down for Life Assurance is not the end of the world, as there are a number of ways potential customers can ask for the decision to be reviewed. Automated systems which decide a person’s eligibility for cover usually operate on a very basic set of criteria, much of which can be reviewed if the person applying for cover is not immediately accepted.

The criteria for acceptance within insurance providers for Life Assurance can vary dramatically from firm to firm, and it makes sense in the first instance for you to try a number of different providers when seeking cover. Some insurers may specialise in providing cover for certain conditions or circumstances, so it is worth shopping around to find the best deal for specific personal circumstances.

Because of this, the lowest priced policy may not always be the best value for customers. Until the quotation has been through the underwriting process, you can’t be sure that the insurance company will actually sign you up to the estimated price for the policy.

Assessments are based on a number of criteria, including your job, hereditary illnesses, or lifestyle choices. You can be declined outright, or your premium cost can increases depending upon these factors. If you get declined, it’s worth giving your potential insurer a call to establish why, and discuss your needs with an advisor rather than relying upon automated systems which have very rigid criteria.