Getting declined for life insurance is more common than you’d think. The most frequent reasons include pre-existing health conditions, obesity, tobacco or drug use, DUIs, and criminal history. Being turned down by one company doesn’t mean you’re uninsurable. An independent agent can match you with carriers that specialize in higher-risk applicants.
Getting a life insurance decline letter is frustrating. You’re trying to do the right thing for your family, and the answer comes back “no.” It can feel like you’re out of options.
You’re not. We talk to people every week who’ve been turned down. In most cases, they applied with the wrong company for their situation. Different carriers have very different underwriting guidelines, and what gets you declined at one company might get you approved at another.
Here are the 10 most common reasons people get declined for life insurance, and what you can do about each one.
10 Reasons You Could Be Declined for Life Insurance
1. Pre-Existing Health Conditions
Health problems are the number one reason people get turned down for life insurance. Conditions like heart disease, cancer, diabetes, high blood pressure, and high cholesterol all raise red flags during underwriting.
That said, the type of condition and how well it’s managed make a big difference. Someone with well-controlled Type 2 diabetes on oral medication is in a very different position than someone with uncontrolled blood sugar and complications. The same goes for cancer survivors. A person who’s been in remission for five years has far better options than someone currently in treatment.
The key is knowing which carriers are more lenient with your specific condition. Some companies specialize in certain health risks, and an experienced high-risk life insurance agent can point you in the right direction.
2. Obesity or Build Chart Issues
This one surprises a lot of people. Every life insurance company uses what’s called a “build chart” to evaluate your height-to-weight ratio. If your BMI falls outside their acceptable range, you can be declined.
The tricky part is that build charts vary from company to company. You might be over the limit at one carrier and perfectly fine at another. With the CDC reporting an adult obesity rate of about 40% in the U.S., this affects a huge number of applicants. If your weight caused a decline, don’t assume you’re stuck. There are carriers with more generous build charts that may approve you at standard or table-rated premiums.
3. Tobacco and Drug Use
Smoking cigarettes won’t get you declined for life insurance. It will cost you more, often 2 to 3 times what a non-smoker pays, but carriers expect a certain percentage of their applicants to be smokers. You’ll still get approved.
Drug use is a different story. Admitted or confirmed use of hard drugs like cocaine, heroin, or methamphetamines is typically an automatic decline. Marijuana is the exception. Some carriers are fine with occasional marijuana use and will still offer coverage at reasonable rates. If you use marijuana, the key is applying with a company that has favorable guidelines for it.
If you have a history of hard drug use but have been clean for three or more years and are in good overall health, many carriers will reconsider your application.
4. Alcohol Abuse
A glass of wine with dinner won’t affect your application. A history of alcohol abuse will. Insurance companies look at your medical records and lab results during underwriting. Elevated liver enzymes, specifically GGT and CDT levels, can signal heavy drinking even if you don’t disclose it.
If you’ve completed treatment and have been sober for two or more years with clean lab work, you can get approved. The key is applying with a carrier that has favorable guidelines for applicants with a history of alcohol use. Timing matters here, and so does choosing the right company.
5. Mental Health and Prescription History
This is one of the fastest-growing reasons for life insurance declines, and many applicants don’t see it coming. Insurance companies now access electronic prescription databases that show your full medication history. Certain prescriptions, especially those used to treat severe mental health conditions, can trigger an automatic decline at some carriers.
That doesn’t mean you can’t get coverage. It means carrier selection is critical. Some companies are far more understanding of mental health treatment than others. Working with an agent who knows which carriers to approach makes all the difference.
6. DUI or Poor Driving Record
Your driving record tells insurance companies a lot about risk. A single DUI from a few years ago is usually workable, though you’ll likely pay a higher premium. Multiple DUIs in the past ten years, or three or more over your lifetime, will result in a decline at most companies.
It’s not just DUIs, either. A pattern of speeding tickets, reckless driving charges, or at-fault accidents can put you in the high-risk category. The good news is that time helps. As violations age and fall off your record, your options improve.
7. Dangerous Hobbies or Occupation
If you skydive, rock climb, scuba dive, or fly private aircraft, insurance companies see you as a higher risk. The same goes for certain jobs. Commercial fishing, logging, roofing, mining, and other high-risk occupations can lead to higher premiums or a decline.
Some carriers handle this by adding a “flat extra” charge to your premium rather than declining you outright. Others won’t touch certain activities or occupations at all. Knowing which companies are more flexible with your specific hobby or job is the key to getting approved.
8. Criminal Record
A criminal record doesn’t automatically disqualify you from life insurance, but it does complicate things. Insurance companies look at the type of offense, how long ago it happened, and whether you’ve completed probation or parole.
A single misdemeanor or a non-violent felony from years ago with a clean record since? You’ll likely find a carrier willing to approve you. Multiple felony convictions or recent offenses are much harder. Most traditional carriers will decline, but there are still options through simplified issue or guaranteed issue policies.
9. Financial Problems or Bankruptcy
Life insurance companies don’t just look at your health. They also evaluate whether the amount of coverage you’re requesting makes financial sense. If you ask for 40 times your annual income without a clear justification, that’s a red flag.
Bankruptcy is another common trigger. If you’ve filed Chapter 7, most carriers want to see at least one year since your discharge before they’ll consider your application. Chapters 11, 12, and 13 may offer more flexibility, since you’re actively making payments on your debts. Each company has its own guidelines here, so the right carrier match matters.
10. Lying on Your Application
This might be the most avoidable reason on the list. If you misrepresent your health, smoking status, driving record, or anything else on your application, the insurance company will likely find out. Carriers subscribe to the Medical Information Bureau (MIB), which tracks your past life insurance applications and any red flags from previous underwriting.
Getting caught in a lie can get your application denied on the spot. Worse, if a misrepresentation is discovered after a policy is issued, the company can void your coverage during the two-year contestability period. Always be honest on your application. A good agent can find the right carrier for your real situation.
What to Do If You’ve Been Declined
A decline from one company is not a final answer. Here’s what to do next.
Get your decline letter. It will explain the specific reason you were turned down. This information is essential for figuring out your next move.
Request your lab results. If health was the issue, ask for copies of the medical exam results. Sometimes errors happen, and you’ll want to verify the findings with your own doctor.
Check your MIB report. The Medical Information Bureau keeps records of your past applications for seven years. If there’s incorrect information on file, you can dispute it. You can request your MIB report for free once per year.
Work with an independent agent. We can help. This is the most important step. Independent agents aren’t locked into one company. They work with dozens of carriers and know which ones are more flexible for your specific situation. What gets you declined at Company A might get you approved at Company B.
Consider no-medical-exam options. If traditional underwriting isn’t working, simplified issue policies skip the medical exam and ask just a few health questions. No-medical-exam life insurance can be a great alternative. Guaranteed issue policies accept everyone regardless of health, though they come with a waiting period and lower coverage amounts.
Frequently Asked Questions
Can you get life insurance after being declined?
Yes. Being declined by one company doesn’t mean you’re uninsurable. Every carrier has different underwriting guidelines. An independent agent can help you find a company that’s a better fit for your health, lifestyle, or financial situation.
Does a life insurance denial go on your record?
It does get recorded in the MIB (Medical Information Bureau) database, which other insurance companies can access. This doesn’t automatically disqualify you, but future carriers will see that you were previously declined and may ask about the reason.
How long does a life insurance decline stay on file?
MIB records are retained for seven years. After that, the record of your previous application activity is removed from the database.
What is guaranteed issue life insurance?
Guaranteed issue is a type of whole life policy that accepts all applicants without health questions or a medical exam. Coverage amounts are typically between $5,000 and $25,000. These policies have a two-year waiting period before the full death benefit kicks in.
Should I apply with a different company right away?
It depends on the reason for your decline. If it was a health condition that’s now managed or a DUI that’s aged off your record, applying with a different carrier could work. If the reason hasn’t changed, it’s better to address the underlying issue first or explore no-medical-exam options.
Can an independent agent help after a decline?
Absolutely. Independent agents work with 30 or more carriers and understand how each company underwrites different risk factors. They can match you with a carrier that’s more favorable for your specific situation, which is often the fastest path to approval.
Key Takeaways
- Pre-existing health conditions, obesity, drug use, and DUIs are among the most common reasons for life insurance declines.
- Every insurance company has different underwriting guidelines. Being declined by one carrier doesn’t mean you can’t get approved by another.
- The MIB tracks your application history for seven years, so always be honest on your application.
- Working with an independent agent who understands high-risk underwriting is the single best step you can take after a decline.
- No-medical-exam and guaranteed issue policies provide backup options when traditional coverage isn’t available.
Declined for life insurance and not sure what to do next? Get a free quote. We specialize in helping people who’ve been turned down find the right coverage.
