Insurance companies consider multiple factors when determining if you are eligible for a life insurance policy. Certain factors such as pre-existing health conditions may make you a greater risk and uninsurable by an insurance company’s underwriting guidelines. Even for standard companies that will offer you a policy if you are considered a high-risk applicant, your rates may be much higher than those of a standard life insurance policy.
Don’t give up hope if you have been denied life insurance coverage, there may still be options available to give you and your family the financial security you desire.
Reasons You May Be Denied Coverage or Considered High Risk
Life insurance companies often deny coverage to applicants based on health criteria or other life circumstances. These applicants may be denied coverage during the initial screening process when completing the life insurance application. Here are some of the likely reasons you may have been denied life insurance coverage:
You are a smoker or use other tobacco products, abuse alcohol or other controlled substances.
You have a terminal illness.
You have any of the following health conditions: heart disease, obesity, cancer, diabetes, asthma, multiple sclerosis or other chronic conditions or diseases.
You have a high-risk profession such as logging, deep sea fisherman and other professions with high death/injury occupational statistics.
You engage in high-risk hobbies such as sky diving or scuba diving.
Insurance Companies Offering Guaranteed Acceptance Life Insurance
If you are looking for a high-risk life insurance policy or a guaranteed acceptance (sometimes referred to as guaranteed issue) life insurance policy these companies are great places to begin your search.
Each company offers different options that may fit the unique financial circumstances of you and your family.
AIG: AIG Direct offers a guaranteed issue whole life insurance policy that offers coverage with no medical exam and no health questionnaire to complete. This type of policy is ideal for individuals looking for coverage to pay extra expenses including medical bills, funeral costs or other financial obligations. The policy is guaranteed issue for individuals 50-85 that may not be insurable through other plans because of health issues. You can obtain a policy for up to $25,000 in coverage which includes chronic illness and terminal illness coverage. Premiums are guaranteed not to increase during the lifetime of the policy.
Colonial Penn: Colonial Penn advertises guaranteed acceptance life insurance beginning with rates of $9.95 per month. There are no pre-existing condition exclusions, no medical exam requirement and no rate increases due to any reason. This policy is available to applicants ages 50 to 85. Coverage amounts are available up to $50,000. Colonial Penn has been in business for over 50 years. It is a subsidiary company of CNO Financial Group. The company has an “A-“ financial strength rating with A.M. Best insurance rating organization with a stable outlook.
Americo: Americo’s Ultra Protector III policy is a guaranteed issue life insurance policy offering level premiums with coverage amounts available from $2,000 to $30,000. It is available for individuals ages 50 to 80. There is no waiting period to receive the full death benefit and up to 50% of the full death benefit is available to those diagnosed with a terminal illness. There is also a 3-year graded death version of the guaranteed issue policy with coverage amounts available from $2,000 to $10,000. With the 3-year graded plan, year one pays out 5%; year two pays out 10%; and year three will pay a death benefit of 75%. Full death benefit amount is available if the death is caused by an accident.
MetLife: MetLife offers a guaranteed acceptance whole life insurance policy for applicants ages 50 to 75. With this policy, you cannot be denied coverage due to health reasons. There are no medical exams or health questionnaires to complete. The policy pays a limited graded death benefit for the first two years of coverage.
Mutual of Omaha: There are three different whole life policies provided through Mutual of Omaha: Whole Life Guaranteed Direct, Whole Life Guaranteed and Whole Life Express. The premiums are guaranteed to never increase and the whole life guaranteed direct policy provides guaranteed acceptance for ages 45-85. Benefits are available from $3,000 to $50,000.
United Home Life: With United Home Life, three different plans are available to cover you no matter your medical situation including people with severe health issues or those who are even considered uninsurable by other carriers. No medical exams are required.
Fidelity Life: Fidelity Life offers a permanent whole life insurance policy called Rapid Decision Guaranteed Issue. Coverage amounts are available up to $20,000 for individuals ages 50-85. There is no health examination requirement and no medical questionnaire to complete. This policy does have cash accumulation value. For the first three years of the policy, there is a reduced death benefit. However, beginning with year four, full coverage is provided. Premiums remain level throughout the life of the policy.
MassMutual: MassMutual’s guaranteed acceptance life insurance policy provides guaranteed coverage throughout the life of the policy. Your premium is also guaranteed never to increase. There is a limited death benefit for the first two years of coverage. Coverage amounts are available for $2,000 to $25,000 beginning with premiums for as low as $10 monthly. The policy is available to applicants ages 50 to 75. No physical examination or medical questions are required. The death benefit is guaranteed for the life of the policy as long as premiums are paid.
Vantis Life Insurance Company: The guaranteed whole life insurance policy provided by Vantis Life Insurance Company is called SBLI Guaranteed Golden life Insurance. It is available to individuals ages 50-80. No health questions or physical examinations are required. Policy values are available from $5,000 to $20,000. Premiums are guaranteed never to increase. Accidental death is covered during the first two years of the policy and after two years, full coverage is provided.
Gerber: Gerber has a guaranteed acceptance life insurance policy for individuals ages 50 to 80. No health questions are asked and no physical examination is necessary. Policy amounts are available ranging in value from $5,000 to $25,000. The Gerber guaranteed acceptance life insurance policy accumulates a cash value which will grow over the life of the policy
Alternatives and Considerations When considering alternatives to a guaranteed acceptance life insurance policy, accidental death and dismemberment insurance (AD&D) is also an alternative to consider. With accidental death and dismemberment insurance, your beneficiaries are paid in the event you suffer death through some type of accident. Even if you don’t qualify for a standard life insurance policy, you may be able to find an accidental death & dismemberment policy that will provide some additional protection for you and your family.
If you are primarily concerned with the final expenses your family will face after your death, you may want to consider a pre-paid funeral plan. This is a plan that may be purchased from a funeral home. You can plan your arrangements and pre-pay for the service before your death. In doing this, you are preventing your loved ones from having to make and pay for your final arrangements.
Even if you have been told you are ineligible for a life insurance policy, there may be options available to you. Have a consultation with your personal insurance agent before making a final determination to see what options will fit you and your family the best. If you do decide to buy a guaranteed acceptance life insurance policy, you will want to check out the insurance company’s customer service record through consumer organizations such as J.D. Power & Associates and its financial strength rating through insurance rating organizations such as A.M. Best.