What's the problem with a formal decline on a life insurance application?

What's the problem with a 'formal decline' on an application?

Your privacy is extremely important.

Having a formal decline on an application for Life insurance (or a life insurance product) is an important thing to avoid where possible.

  • This is because, for any future insurance application, you would be legally bound to disclose the initial refusal.
  • This is covered in the question that's similar to, 'Have you ever been refused insurance for any reason?'.  Failing to declare this formal decline would give every insurance company grounds to attempt to void any future claims.

So how does this happen?

We see time and time again how people have made an application for life insurance either through a Superannuation fund or some form of questionable online comparison service promising the world. After providing all their personal information to a telemarketer or bank clerk and having to deal with all the disclosure issues that for many people with chronic health conditions is difficult, deeply sensitive and personal, they then are told, they are 'formally declined' and a formal decline record is applied to their insurance history.

They are left believing that 'the decline' was solely due to their health and they are left to deal with the uncertainty and associated feelings that come with being told you're not acceptable.

What they were not originally told, but should have been

What they were not told is that particular brand of insurance provider, bank or comparison websites was probably never able to cater to their particular situation in the first place.

  • It’s like going to a fast-food shop and trying to buy a box of healthy fresh fruit – it’s the wrong shop to go to. 
  • They just don’t sell that solution, but they also didn't tell you that ahead of time.

The problem is not you, the shop never had the ability to ever provide what you wanted anyway.  And they failed to tell you that ahead of time.

The bigger problem then is, how do you deal with a formal decline in your insurance, and what does that mean?

This is why people with chronic health issues need the service of a specialist like unusualrisks.com.au who know where to shop for their clients with unusual risks.


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