Denied life insurance? Here are four alternatives to consider

The truth is, life will always try to give you reasons to give up but that does not mean you should. Whether it’s a job application turned down, denied life insurance application, or declined school application, getting rejected can feel very demoralising.

Life insurance companies employ the underwriting process to determine whether a candidate qualifies for coverage and the amount of premiums to pay. Guidelines differ from one provider to another, which means there’s no guarantee an insurer will accept your application for life insurance coverage.

For instance, if you have a chronic medical illness or you’re too old, there’s a high likelihood that your application will be rejected. That being said, there is no cause for alarm as there are other great alternatives you can consider in such situations.

Here are four feasible options to start with;

Non-medically underwritten life policy

Lifestyle and health factors are a major determinant whenever you’re taking out life insurance. If a pre-existing medical condition or previous health issue was the reason your application was denied, a non-medically underwritten life policy is an excellent alternative to consider. With this cover, you are not subjected to a medical exam or asked any lifestyle or medical questions.

The downside to this type of policy is it can be costly due to its relatively higher premiums. Also, it comes with several limitations to help protect the insurer from incurring massive losses. Finally, the policy is only available to individuals above 50 years.


If you cannot get life insurance coverage through third party insurance, self-insurance is the next best thing. It allows you to bear the risks yourself by developing a personalised backup plan. It serves the same purpose as life insurance, which is to ensure that your dependents are secured financially upon your demise.

The best way to self-insure is to take the money you would otherwise have spent paying the insurance company if your application could have been accepted and direct it to a taxable investment account.

For instance, you can invest in a mutual fund account for 15 to 20 years. Upon maturity, you shall have accumulated quite a substantial amount of money.

You can consider increasing your mortgage payments if you are worried that your dependents will be left with a significant amount of debt to deal with. By clearing your debt within a shorter period, you can use the interest saved money in a viable investment plan.

Talk to an expert

Just because your application was rejected by one insurance company doesn’t mean that all other providers will.

In most cases, when your application is denied, you will receive a letter from the insurance company saying why they rejected it. Sometimes, the information may come from the agent or broker who assisted you in filling the application.

If you decide to re-apply to another company, it is essential that you seek advice from a life insurance expert. They will look through your application and identify possible mistakes that led to the rejection in the first place.

The advantage of talking to an agent or broker is that they help you remove possible application barriers that could get you rejected again. They also understand the underwriting guidelines, which means they can recommend a different insurance company with better terms.

Ask your employer for assistance

Talk to your employer to see whether they have any optional life insurance you can join. Most companies and organisations have benefit packages with some including life insurance coverage.

The good thing about getting life insurance from your employer is that it rarely cost you much, if any. Unfortunately, most of these plans don’t provide adequate coverage but there’s always an option to upgrade the policy and increase the payout at a fee.

For example, you can get a policy worth 8 to 10 times your annual salary. Usually, the coverage is based on your salary, which means that if you get a promotion, your employer will provide you additional coverage.

The advantage of workplace life insurance is that the chances of your application getting denied is minimal, even with a serious medical condition. This is because you do not have to take any medical exam.

Another thing to remember here is that coverage only exists if you remain employed. If you resign or get laid off, it ends. However, if this was to happen, you can choose to change it to an individual plan if the insurer offers this option.


The primary purpose of life insurance is to ensure that your dependents are secured financially upon your demise. There are several ways of making that happen if your policy gets rejected. Some of the most feasible alternatives include self-insuring, consulting an expert, taking out a non-medically underwritten life policy, and seeking assistance from your employer.