Top Reasons People Get Denied Life Insurance (And How to Avoid It)

May 29, 2025

mature couple reviewing and signing paperwork

Applying for life insurance can feel like a big step. You’re doing it to protect your family, to make sure they’re financially secure if something ever happens to you. But what many people don’t expect is how often life insurance applications get denied.

Sometimes it’s a health issue you didn’t think was serious. Other times, it’s a lifestyle habit that seems harmless. Life insurance companies are trained to spot risks, and even small details can affect your chances of getting approved.

The process may seem complicated, but it doesn’t have to be. Once you understand what insurers are looking for, you can take smart steps to improve your application. This guide will show you the most common reasons people get denied and how to avoid those same mistakes. With a little preparation, you’ll be in a much better position to get the coverage your family depends on.

Pre-Existing Health Conditions

Pre-existing health conditions represent one of the most common reasons for life insurance denials. Insurance companies carefully evaluate medical histories to assess the risk associated with insuring each applicant.

Common Health Conditions That May Affect Approval

A pre-existing condition refers to any health issue or medical diagnosis that existed before you applied for life insurance. Common examples include:

Heart Disease: Heart disease sounds like a major red flag — and it can be — but it’s a common misconception that heart troubles mean automatic rejection. Some conditions, such as certain atypical heart rhythms, may not involve other disease symptoms or require treatment. However, if you have congestive heart failure, a heart transplant, or you’ve had a heart attack in the last 5 years, most traditional insurance policies are not going to be an option for you.
Cancer: Cancer survivors may have the best chances to qualify and get the best premium rates they can the further out they are from the cancer (e.g., 7 years or more). If you’ve had cancer or are currently undergoing cancer treatment, your life insurance application may be denied until you’ve been in remission a certain number of years.
Diabetes: Type 2 diabetes develops later in life and is generally more responsive than Type 1 diabetes to diet, exercise and medication interventions. Insurance companies may have more options for people with Type 2 diabetes because there are more options to manage the condition and lower risk, whereas Type 1 diabetes requires lifelong management with insulin. People with Type 1 or poorly managed diabetes are more likely than other types to get denied coverage.
High Blood Pressure and Cholesterol: High cholesterol can indicate higher risk of heart disease, which worries insurance underwriters. Some people believe insurance companies flat-out deny anyone with concerning blood work measures, like high blood pressure or cholesterol, but fortunately this isn’t the case.
Mental Health Conditions: Mental health is another area that has a wide range of conditions and severity. You may still be able to get traditional life insurance if you have mental health issues. Anxiety and depression are common issues that affect about 36-41 percent of U.S. adults. Again, treatment and how serious the condition is matters.

How Health Conditions Impact Insurance Decisions

Insurance companies evaluate several factors when considering pre-existing conditions:

Severity: How serious is the condition?
Treatment: Is the condition being effectively managed?
Duration: How long have you had the condition?
Stability: Has your condition been stable, improving, or worsening?

Tips for Applicants with Pre-Existing Conditions

If you have a pre-existing condition, don’t assume you can’t get life insurance. Many people with health conditions qualify for coverage every day. To improve your chances:

Demonstrate management of your condition: Demonstrating vigilant management of the condition, such as routine medical provider visits and regular medication usage, can reduce risk from the insurer’s point of view.
Provide detailed medical records: Complete documentation of your treatment history can help insurers better assess your risk.
Work with an experienced agent: If you were denied traditional life insurance, we recommend accepting the group life insurance coverage and buying as much voluntary supplement coverage as you can comfortably afford.
Consider specialized insurers: Some insurance companies specialize in covering people with specific health conditions.

Poor Medical Exam Results

Most traditional life insurance policies require a medical exam as part of the application process. Poor results can lead to higher premiums or outright denial.

Key Health Metrics Insurers Evaluate

The underwriting process for most carriers includes a medical exam in which the company records your height, weight, blood pressure, cholesterol, and other vital metrics. It may also require an electrocardiogram (ECG or EKG) to check your heart. Key factors include:

BMI (Body Mass Index): Being significantly overweight or underweight can affect approval.
Blood pressure: High readings indicate increased health risks.
Cholesterol levels: High levels may suggest cardiovascular concerns.
Blood sugar: Elevated levels could indicate diabetes or prediabetes.
Liver and kidney function: Abnormal test results may raise red flags.

How to Prepare for Your Medical Exam

To improve your chances of favorable results:

Schedule morning appointments: Your blood pressure and other vitals are typically lower in the morning.
Fast for 8-12 hours before the exam: This helps ensure accurate blood test results.
Avoid alcohol, caffeine, and nicotine for at least 24 hours before the exam.
Limit salt and high-cholesterol foods for 24 hours before the exam.
Get a good night’s sleep before your appointment.
Stay hydrated to make blood draws easier and improve kidney function indicators.
Avoid strenuous exercise for 24 hours before the exam, as it can affect protein levels in urine tests.

High-Risk Lifestyle or Occupation

Some occupations have a statistically higher rate of death. For example, jobs like farming, fishing, construction, security or emergency services can come with a higher risk of death. Life insurance for high-risk jobs like construction will therefore cost more.

Dangerous Occupations That Affect Insurability

Some life insurance companies will automatically decline an applicant that has an occupation that is considered to be a “high risk.” However, it’s important to note that not all life insurance companies are the same, and while one company may decline you due to your occupation, another company may completely overlook this factor and offer you an average or better rate class.

According to various insurance resources, the most dangerous occupations often include:

Logging workers
Fishing industry workers
Pilots and flight engineers
Roofers
Construction workers
Mining industry workers
Waste management workers
Truck drivers and delivery personnel
Electrical power-line installers
Agricultural workers

High-Risk Hobbies and Activities

If you lead a risky lifestyle with hobbies such as racing cars, scuba diving, or rock climbing, you will probably pay more for your life insurance policy than someone who doesn’t engage in these activities. Other high-risk activities often include:

Skydiving or BASE jumping
Hang gliding or paragliding
Mountain climbing
Motorcycle racing
Cave diving
Backcountry skiing
Boxing or martial arts competitions

How to Address Lifestyle Risks

If your occupation or hobbies put you in a high-risk category:

Shop around: Finding life insurance for high risk occupations can be difficult, but working with an independent agent gives you leverage to make sure you get the most affordable policy that fits your needs.
Consider specialized coverage: Most life insurance policies will charge what is called a “flat extra” for those in high risk occupations. This is an extra cost that insurance companies charge to applicants who present an additional lifestyle risk due to their occupation.
Demonstrate safety measures: Show that you follow strict safety protocols in your occupation or hobby.
Consider occupation changes: If possible, moving to a supervisory or administrative role in your field might improve your insurability.
Temporary adjustments: Some applicants temporarily suspend high-risk activities during the application process.

Substance Abuse History

Smokers can usually get life insurance unless they’ve developed a disease due to smoking, but will pay higher premiums than nonsmokers. However, a history of substance abuse can significantly impact your life insurance application.

How Tobacco, Alcohol, and Drug Use Affect Applications

Tobacco: Smoking puts you at a higher risk for many health problems. Thus, life insurance companies charge more to insure smokers. In fact, smokers may pay more than twice as much as non-smokers for comparable coverage. An insurance company may classify you as a smoker even if you occasionally smoke cigarettes, cigars, or vapes.
Alcohol: Drinking can pose a potential health risk. Life insurance companies will check your application, driving record, and medical exam to get a picture of your drinking habits. Drinking less alcohol, or stopping entirely, makes you less of a risk for the company; therefore, you’ll likely be rewarded with a lower premium.
Drugs: Current or recent drug use typically leads to automatic denial. Past drug use may be acceptable if you can demonstrate a significant period of sobriety.

Recovery and Sobriety Considerations

Insurance companies typically look at:

How long you’ve been sober or abstinent
Whether you’ve completed treatment programs
Whether you’ve had relapses
The severity of past addiction
Any related health complications

Tips for Applicants with Substance History

Be honest: If you lie to your insurance company about your smoking habits and get caught, your policy could be canceled. The same applies to other substances.
Demonstrate sobriety: The longer you’ve been substance-free, the better your chances of approval.
Provide documentation: Medical records showing successful treatment completion can help.
Consider waiting: If your sobriety is recent, waiting a year or more before applying might improve your chances.
Work with specialists: Some insurance agents specialize in helping applicants with substance abuse history.

Incomplete or False Information

If you’re found to have intentionally misled or lied about certain information on your life insurance application, including the areas discussed above, you can be denied coverage. This also includes withholding any important information from the insurer during the application process.

The Consequences of Application Dishonesty

Lying on your life insurance application could lead to the denial of benefits for your loved ones, canceled coverage or even criminal charges. Insurance companies have many processes in place to verify application information and detect misrepresentations.

Life insurance policies typically contain a two-year contestability period, in which the insurance company reserves the right to cancel coverage if material misrepresentation is discovered within that time frame. If you die and a claim is made during the contestability period, it is absolutely guaranteed that the insurance company will undertake a thorough investigation to ensure no fraud was committed during underwriting in an effort to void coverage and avoid paying the claim.

Common Information Verification Methods

Insurance companies verify application information through:

Medical Information Bureau (MIB): Life insurance carriers subscribe to something called the Medical Information Bureau (MIB), which issues a report to companies about your previous life insurance applications and approvals/denials.
Prescription databases: Insurers can access your prescription drug history.
Medical records: Your doctor’s records can be accessed with your authorization.
Motor vehicle reports: Driving records are often checked.
Financial verification: Income and net worth claims may be verified.

Best Practices for Application Honesty

As with any insurance policy, it’s better to be honest and forthcoming when applying for coverage to ensure you receive coverage and maintain a good reputation amongst carriers.

Be thorough and accurate: Provide complete information about your health, lifestyle, and financial situation.
Disclose all medical conditions: Even if you think a condition is minor, disclose it.
Report all medications: Include prescriptions, over-the-counter medications, and supplements.
Be specific about hobbies and activities: If you engage in potentially risky activities, provide details about frequency and safety measures.
Review your application carefully: If your application is prepared by your life insurance agent, review it carefully before signing. If your application contains misrepresentation of material facts due to your agent’s negligence, that can also result in your claim being denied.

Poor Financial History or Criminal Record

Your financial history and criminal record can significantly impact your life insurance application, as insurers consider these factors in their risk assessment.

Financial Factors That Affect Approval

Insurers may reject your life insurance application if there’s reason to believe you can’t afford the premiums. This might happen if you have a history of bankruptcy, lots of outstanding debt or a low income.

Key financial concerns for insurers include:

Bankruptcy: Bankruptcy, to many insurance providers, symbolizes heightened financial risk. The rationale is that someone who has declared bankruptcy may face challenges in consistently paying their premiums, potentially leading to policy lapses.
Debt-to-income ratio: High levels of debt relative to income may raise concerns about premium payment ability.
Income verification: When you apply for coverage, your current income and total net worth will dictate how much coverage you can apply for.
Coverage justification: Insurers have also been known to deny applicants coverage if the amount they apply for doesn’t make sense for their financial situation.

Criminal History Considerations

If you have a criminal record or poor driving history, this could hurt your options for getting life insurance coverage. For criminal history, the recency and frequency of your violations, as well as the nature (violent or nonviolent) of your offenses could impact how the insurer views your application.

Factors that insurers evaluate include:

Type of offense: Violent crimes or financial crimes typically raise more red flags.
Time since conviction: More recent convictions have a stronger negative impact.
Pattern of behavior: Multiple offenses suggest higher risk.
Current status: Probation or parole status may affect approval.

Strategies for Overcoming Financial or Legal Obstacles

Improve your credit: Pay down debt and establish a history of on-time payments.
Wait time: Time could help with the nonmedical reasons for denial too—like letting enough time pass for those multiple speeding tickets to fall off your record.
Start small: Apply for a smaller coverage amount that better aligns with your financial situation.
Provide context: If applicable, explain circumstances surrounding past financial difficulties or legal issues.
Show stability: Demonstrate current financial responsibility and stability through employment history and bill payment records.

Age and Coverage Amount

This probably won’t come as a shock to you, but the older you become, the harder it is for you to obtain coverage (not to mention the premiums get quite a bit more expensive). With age typically comes health issues, which puts you more at risk to a life insurance company.

How Age Impacts Life Insurance Decisions

Typically, the life insurance premium cost increases from 8% to 10% on average for every year of age. Essentially, the longer you wait to buy life insurance, the more you will have to pay for premiums.

Age-related factors that affect insurability include:

Life expectancy: Older applicants have shorter life expectancies, increasing risk.
Health complications: Age increases the likelihood of health issues.
Maximum age limits: Insurers may deny term life insurance to applicants over a certain age, such as 75.
Application timeline: Your options for getting life insurance start to become limited once you reach age 80, but there are insurers that will offer you coverage through age 85.

Balancing Coverage Needs with Realistic Expectations

When determining appropriate coverage amounts:

Income replacement: Consider how much income your family would need to replace.
Debt obligations: Calculate outstanding mortgages, loans, and other debts.
Future expenses: Factor in education costs, retirement needs, and funeral expenses.
Policy term: Shorter terms may be more accessible for older applicants.

Age-Appropriate Insurance Strategies

Apply early: When you’re young and healthy you can lock in a lower rate that won’t change throughout the life of your policy. This means that any illness or added financial burdens in your life won’t cause a spike in your premiums or diminish your coverage.
Ladder multiple policies: Purchase several smaller policies with different term lengths to match decreasing needs over time.
Consider permanent policies: For older applicants, whole life or guaranteed universal life policies might be more appropriate than term insurance.
Be realistic about coverage amounts: Insurers won’t write a policy for someone whose household income is below $20,000 (this level varies between companies). Insuring people below a certain income level can result in issuing a large number of small policies, therefore producing lower premium flows.

How to Improve Your Chances of Approval

Taking proactive steps before applying for life insurance can significantly improve your chances of approval and potentially lower your premiums.

Health and Lifestyle Improvements

Activities such as regular exercise, a balanced diet, moderate alcohol consumption, and non-smoking can all contribute to lower premiums. Regular exercise reduces the risk of many health conditions like obesity, heart disease, high blood pressure, and diabetes.

Specific improvements to consider:

Quit smoking: Walking is good cardio exercise, especially if you’re a fast walker that enables you to reach your target heart rate. Walking offers a wide range of physical and mental benefits while also being low impact and safer for individuals with arthritis or other joint issues.
Lose weight: Achieve a healthier BMI through diet and exercise.
Control chronic conditions: If you’re diligent about managing your cholesterol with healthy exercise, nutrition and certain medications, insurance companies are more likely to see you’re doing your part and approve you for a policy.
Reduce alcohol consumption: Reduce or eliminate your alcohol intake.
Improve driving habits: Insurance companies can hike your premium if you incur multiple moving violations.

Working with an Independent Agent

If you applied through a captive agent, it might benefit you to instead apply with an insurance broker. Captive agents only have access to the life insurance company that employs them, while independent brokers have access to many. Not all life insurance companies underwrite the same way. The reason for your denial at one company may not necessarily result in a denial at another. Working with a broker is the best way to determine if you can get approved for life insurance.

Benefits of working with an independent agent include:

Access to multiple insurers: Compare policies from various companies.
Specialized knowledge: Expertise in placing applicants with specific health or lifestyle challenges.
Application strategy: Guidance on which companies are most likely to approve your specific situation.
Policy optimization: Help balancing coverage needs with budget constraints.

Timing Your Application Strategically

Strategic timing can improve your chances of approval:

Apply after health improvements: Wait until you’ve established a track record of better health metrics.
Consider seasonal factors: Some health conditions fluctuate seasonally.
Coordinate with medical treatments: Apply after treatment completion and stabilization.
Time your application with lifestyle changes: Apply after establishing a period of non-smoking or sobriety.

Pre-Application Medical Checkup

If your life insurance application is rejected, ask for details. See if the denial was based on inaccurate information, such as an error in your medical records or a false positive drug test.

To avoid surprises:

Get a comprehensive checkup: Identify any potential health issues before applying.
Address treatable conditions: Resolve acute issues and stabilize chronic conditions.
Review your medical records: Correct any errors in your medical history.
Know your numbers: Be aware of your blood pressure, cholesterol, and blood sugar levels.

What to Do If You’ve Been Denied Life Insurance

No matter what the reason, here are some steps to take if you’re denied life insurance.

Understanding the Denial Reason

Contact your financial professional and/or the insurer. They can make sure a mistake wasn’t made on your application. They can also give you insight into why you were denied life insurance.

Common denial reasons include:

Health conditions deemed too risky
Dangerous occupation or hobbies
Poor medical exam results
Financial instability
Inaccurate or incomplete application information

Appealing a Denial Decision

Consider appealing the decision. If you’re denied life insurance on the basis of incorrect or insufficient information, you have the right to appeal the decision. You’ll have the best chance of winning your appeal by submitting timely and complete information. This means having your doctor include as much up-to-date information in your medical file as possible and submitting the most recent and credible information about your personal history.

Steps to appeal effectively:

Request specific denial reasons in writing
Gather supporting documentation to address concerns
Correct any application errors or misunderstandings
Provide updated medical information if applicable
Consider a letter of explanation for complex situations

Alternative Insurance Providers

Apply with a different insurer. Every insurer has different criteria for life insurance approvals. Try applying for life insurance with a different insurer (or insurers) before giving up hope.

Options to consider:

Specialized insurers that focus on specific health conditions
High-risk insurance providers with experience in difficult cases
Different policy types that might be more accessible
Insurance groups or associations that offer group rates

Life Insurance Options for High-Risk Applicants

If traditional life insurance isn’t available, several alternatives can provide coverage for high-risk applicants.

Simplified Issue Life Insurance

Simplified issue life insurance is a type of life insurance that doesn’t require a medical exam. It can be a good option for people who are healthy but do not want to undergo a medical exam. It can also be a good option for people who have pre-existing health conditions that would make it difficult to qualify for traditional life insurance.

Key features:

No medical exam: Only health questions are required.
Faster approval: Simplified issue policies are kind of in the middle point between traditional and guaranteed issue. It gives you some options that traditional life insurance coverage has — you can choose either term or whole.
Moderate coverage limits: As you move from regular insurance to guaranteed, the amount of life insurance you can have goes down.
Higher premiums: More expensive. There’s a higher financial risk involved for the insurance company when they give you a policy, so your premiums will be higher compared to standard life insurance, which has a full underwriting process.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance works like it sounds—the insurance company guarantees coverage if you’re within the required age range. Usually, you’re approved if you’re between 50 and 80, but some companies offer this coverage as early as age 45 and up to age 85.

Important considerations:

No health questions or exam: Guaranteed issue life insurance doesn’t require health questions or a medical exam.
Age restrictions: In general, guaranteed acceptance life insurance is available to applicants who are 45 to 85 years old.
Lower coverage amounts: Death benefits for guaranteed life insurance policies can be as low as $2,000 and max out at $25,000.
Waiting period: These plans are usually more expensive than typical term and whole life policies because they are considered riskier. You can’t access the benefits of these plans immediately because there is an initial waiting period. If the policyholder passes before the waiting period is over, the beneficiaries will not receive the death benefit.

Group Life Insurance Through Employers

Look into a workplace life insurance plan. You might have luck gaining coverage through your employer’s group life insurance plan. It may not give you the coverage limit you want, but with life insurance, something is always better than nothing.

Advantages of group coverage:

No medical underwriting: Coverage is guaranteed regardless of health.
Convenience: Premiums are typically deducted from your paycheck.
Potential for supplemental coverage: Typically, you can buy additional life insurance coverage on top of the free group insurance without going through any underwriting. This is called voluntary life insurance; you can often buy up to 3-5 times your salary.
Portability options: Some policies can be converted to individual coverage if you leave your employer.

Accidental Death Insurance

For those unable to qualify for other types of coverage, accidental death insurance provides limited protection.

Key characteristics:

Covers accidental death only: Does not cover death from illness or natural causes.
No health questions: Approval is virtually guaranteed.
Affordable premiums: Lower cost than other insurance types.
Quick approval: Minimal underwriting requirements.

Frequently Asked Questions

Can you appeal a life insurance denial?

If you’re denied life insurance on the basis of incorrect or insufficient information, you have the right to appeal the decision. You’ll have the best chance of winning your appeal by submitting timely and complete information.

Will one denial affect future applications?

If you have previously been denied by a life insurance company, it increases your risk of getting denied again. Life insurance carriers subscribe to something called the Medical Information Bureau (MIB), which issues a report to companies about your previous life insurance applications and approvals/denials. However, different companies have different underwriting standards, so denial by one insurer doesn’t automatically mean denial by all.

How long should you wait before reapplying?

If you want to submit a new application, wait at least six months. That’s long enough of a waiting period to improve your financial standing by making more on-time payments. This waiting period also gives you time to address health concerns or lifestyle factors that contributed to the initial denial.

Can you get life insurance after a serious diagnosis?

Yes, though options may be limited. According to the Center for Disease Control and Prevention, 1 in 10 Americans has diabetes. The good news is that most type 1 and type 2 cases won’t prevent you from getting coverage. Similarly, many other conditions may not prevent coverage entirely, particularly if well-managed. Consider guaranteed issue policies or working with specialized agents who focus on high-risk cases.

Conclusion

Getting denied for life insurance can feel frustrating, but it doesn’t mean you’re out of options. Once you know what insurers look for, you can take steps to strengthen your application and improve your chances of approval. Whether it’s managing a health condition, quitting a risky habit, or choosing the right type of policy, a little preparation goes a long way.

Still have questions or want help choosing the right plan? Talk to an agent or get a personalized quote today. It’s the first step toward protecting your family’s future with confidence.