What Are My Options If I Was Declined for Critical Illness Cover Insurance?

Being declined for critical illness (CI) cover insurance can be frustrating and unsettling. However, there are several steps you can take to explore your options further and find suitable coverage. In this article, we will discuss what to do after being declined, how to seek local brokers, and the various types of policies available.

Request More Information from the Insurer

If you have been declined for one or a handful of reasons, the first step is to request more information from the insurer. Insurers have their own unique underwriting guidelines, so they will treat medical issues differently. By understanding the specific reasons for rejection, you may be able to work towards getting coverage in the future.

Seek a Local Broker for Plan Comparisons

Local brokers can help you compare different plans and find the best option for your needs. They have experience with numerous insurers and can provide guidance on what to look for in a critical illness insurance policy. This can be a valuable resource in navigating the complexities of the insurance market.

Consider Lenient Underwriting Options

There are a few companies, such as Family Heritage, that have more lenient underwriting guidelines. They may not ask about family history and can still cover you partially or fully, depending on the specific policy. For example, a critical illness policy typically protects you upon the diagnosis of heart attack, stroke, cancer, or other specified conditions. Therefore, if you had cancer in the past, you may still be covered for heart attack or stroke. Conversely, if you had a heart attack, you may still be covered for cancer. Similarly, the insurer must tell you the reason for the decline and whether you might be eligible for coverage in the future.

Discuss the Reasons for the Decline

Depending on the reason for the decline, it may be possible to apply for coverage again in the future. If you were declined due to a pre-existing condition, you might not be able to get CI coverage during that period. However, consulting with a knowledgeable agent can help you understand your options and explore alternative solutions. The agent can also guide you on the best approach for re-applying, providing crucial information that might increase your chances of approval.

Understand the Types of Critical Illness Policies

The type of critical illness policy you choose can significantly impact your coverage and the associated costs. Generally, there are two primary types of policies:

Basic or Stripped Down Policies: These cover a smaller number of conditions, usually 4 or 5, such as cancer, heart attack, and stroke. They are simpler to apply for and approve, making them more accessible. However, these policies typically offer smaller payouts, which may be more affordable but may not cover the full cost of treatment. Comprehensive Policies: These cover over 20 conditions, which can make it more challenging to be declined. While these policies are more robust and have higher payouts, they may also be more expensive.

It's important to carefully consider your needs and budget when choosing a critical illness policy. Consulting with a professional can help ensure you make the best decision for your situation.

Key Takeaways:

Request more information from the insurer to understand the reasons for decline. Seek the advice of a local broker for comprehensive plan comparisons. Consider policies with lenient underwriting for partial or full coverage.

Good luck as you navigate the insurance options and safeguard your health.