A New Result for a Declined Applicant

Author:  Mark Barsotti

Licensed Life Insurance Agent at Matrix Direct

To many people, life insurance probably seems pretty cut and dry, forms and guidelines, yes or no. But that’s not really true. What causes a person to get declined – or receive a higher rate – at one carrier might not be an issue to another.

Not long ago, I got proof of this. The wife of a prospective client called, upset that her husband had recently been declined by another carrier. Apparently, while the carrier was processing his application, they found a traffic charge on his record for having an open container of alcohol in a national park.

At first glance, that might seem like a very serious offense. But the client wasn’t cited for being under the influence of alcohol. I don’t even know if he’d had a drink at all. The charge was having an open container. When I think about it, an open container might mean an empty bottle or can in the back seat of a car, on its way to the recycle bin.

I don’t know how the insurance company thought about it, but they denied this man coverage. And his wife was upset because they considered the reason unfair. Because of this, she was hesitant to go through the application process again, knowing it was possible the result would be the same: denial of coverage, based on a traffic ticket.

I can understand her point of view. It’s disappointing to be turned down, and it must have felt like a shock that it was for a traffic charge.

This was an interesting case. They already had rock-solid proof that an insurance carrier would deny him for this traffic charge. So was it possible another carrier would see things differently? I told them I would look into it.

As an agent, I see all kinds of situations. And even when something seems impossible, it’s often not. I’ve helped people who were initially declined get covered. I’ve helped people who thought they couldn’t get covered because of a medical condition or tobacco usage end up with good policies. I’ve even helped people get a lower rate after their policy was in force. I’ve seen all kinds of things that prove term life insurance companies will give people fair consideration.

So I started looking into it. I contacted three different carriers. I explained the situation and got my client “pre-quoted.” I was assured that, if the facts were exactly as my clients had presented them, that we should be able to obtain the coverage they desired.

It was really satisfying being able to contact them with this hopeful news.

Two weeks after our initial conversation, I wrote the official application. The case did take a while to make it through underwriting, but American General approved the application as applied for.

My clients were understandably pleased. And I like to think it showed them that the only thing black-and-white about term life insurance with Matrix Direct is the form you fill out. Everything else has a human touch.