What’s the possible outcome of an application for insurance?
There are usually 3 outcomes that an application for insurance can have.
- Accepted – this is where an insurance policy is offered on standard terms for you to review and accept. (This is the best-case scenario).
- Loaded or Excluded – where an insurance policy is offered on non-standard terms eg: premiums are increased due to risk or specified conditions are excluded eg: covering all issues except a re-occurrence of a pre-existing back I injury etc. (This is still a good case scenario as it means you can still get cover).
- Declined - a decline decision can also mean that the life company doesn't have enough information at this stage to reach a decision. This might happen if your GP has recommended you see a Specialist about an issue, and you haven’t yet seen the Specialist ( so the usual information is not yet available). In this situation, your medical information is considered 'not yet complete' so a final underwriting decision cannot be made until the information is complete So the application is declined.
Insiders tip: Be aware all Insurance policies that are offered with non-standard or amended terms of cover or conditions usually have to be accepted within 21 days. (This is because a person's health can change over time).