Why Was Your Application Declined?
Life insurance applications are declined for a relatively small percentage of cases. The most common reasons include:
- Serious or recent health conditions – Cancer treatment in the last few years, recent heart attack or stroke, or uncontrolled conditions.
- Mental health – Recent hospitalisation, multiple suicide attempts, or severe ongoing mental health crises.
- High-risk occupation – Certain jobs involving extreme danger (deep-sea diving, working at extreme heights, military combat roles).
- Dangerous hobbies – Base jumping, cave diving, mountaineering above certain altitudes.
- Drug or alcohol use – Current or very recent substance abuse issues.
- Excessive cover relative to income – Applying for a very large payout that seems disproportionate to your financial situation.
What to Do Now
1. Ask Why You Were Declined
Contact the insurer and ask for the specific reason. This helps you understand what to address and which alternative options may be available.
2. Use a Specialist Broker
Specialist insurance brokers (sometimes called “non-standard” or “impaired life” brokers) have experience placing cover for people with complex medical histories, high-risk occupations, or previous declines. They know which insurers are most likely to accept your specific circumstances.
3. Try a Different Insurer
Each insurer uses its own underwriting criteria. Some are more lenient with certain conditions than others. For example, one insurer might decline someone with Type 2 diabetes while another offers cover at a modest premium loading.
4. Consider Alternative Products
- No medical life insurance – Guaranteed acceptance without health questions, but lower payouts and higher premiums.
- Over 50s plans – Guaranteed acceptance whole of life policies for those aged 50–85.
- Group life insurance – Employer-provided death in service often has no individual medical underwriting.
5. Wait and Reapply
If your decline was due to a recent health event, waiting 12–24 months and then reapplying (once your condition is stable and well-managed) can significantly improve your chances.
Will a Decline Affect Future Applications?
A previous decline does not automatically mean you will be declined again. However, you will be asked on future applications whether you have ever been declined, deferred, or offered insurance with special terms. Answer honestly. A specialist broker can help you present your case in the best possible light.
Frequently Asked Questions
Common reasons include serious health conditions, mental health issues, high-risk occupations, dangerous hobbies, or substance abuse. Ask the insurer for the specific reason.
Yes. Different insurers have different criteria. A specialist broker can help find an insurer that will accept your circumstances.
No. Life insurance declines do not appear on your credit file and have no impact on your credit score.
Guaranteed acceptance cover without health questions, but with lower payouts, higher premiums, and usually a waiting period.