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5 Reasons Why Retired Seniors Get Declined For Burial Whole Life Insurance

How to avoid getting declined… saving you time and money while you’ll still get the life insurance you need.

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Ever get a call from someone with a foreign accent talking about a new “state approved burial plan”? 

These callers call at least 10 times a day and it’s so annoying!!!

That feels like a scam and it wastes too much time right?

Isn’t there a better way to get more information about these new low priced state approved burial whole life insurance plans?

This article explains:

  • What are 5 common reasons that will cause companies to decline your application
  • What the real prices are
  • Which companies are the easiest to get approved with

If you take the quiz at the bottom of the page, then you can learn how to enter our $20 Amazon gift card giveaway!!

#1 What are common health conditions that tend to get declined?

Each insurance company looks at the same person a little differently.

One company may accept you while the other will decline you. 

When I say decline, I don’t mean impossible. 

I am referring to being declined for a policy that pays out immediately even if you got approved today and paid today.  

Although the following health conditions may be difficult to get approved, please keep in mind that all of these can still get guaranteed approval with AIG:

  • You use an oxygen machine (not a CPAP for sleep apnea that’s not a decline)
  • You were diagnosed with Alzheimer’s or Dementia
  • You had an amputation due to disease
  • You currently undergo dialysis treatments
  • You’ve tested positive for HIV/AIDS
  • You CURRENTLY have cancer
  • You’ve had an organ transplant

If none of these apply to you, you may qualify for immediate coverage. 

If any of these apply to you then you will qualify for guaranteed approval.

Guaranteed approval policies don’t ask medical questions. They approve anyone above the age of 50 and younger than 85.

AIG is the best option for guaranteed approval.

The way guaranteed approval policies pay out is simple. Death by an accident pays out immediately. 

Any other reason is a refund plus 10% of everything you’ve paid the first 2 years. 

Beginning month 25, the full benefit locks in.

According to this chart, Mutual of Omaha is not a good fit for you if your weight is below their minimum or above their maximum for your height. 

Therefore, you WOULD want to apply with CVS Aetna because they don’t care about your height/weight build. Below is the Mutual of Omaha height/weight build chart:


#2 Why do life insurance companies care if you're in a healthcare facility?

Normally, most of us would rather be home versus the hospital, or assisted living, or any health care facility.

Once we are admitted overnight under the care of medical professionals, we become eligible for a guaranteed approval policy. 

Immediate day one coverage will not be an option.

If you are currently admitted to any healthcare facility overnight , guaranteed acceptance with 

AIG will be your best bet for two reasons . 

  • AIG is much larger than Gerber or any other guaranteed acceptance insurance company in terms of assets – which is the most important factor when picking a company that can easily afford to payout the life insurance that you want to leave behind. 
  • AIG is cheaper.

#3 How to get Approved if you have scheduled a medical test/procedure:

It is normal to ponder life insurance when we have a medical test/procedure scheduled sometime in the future.

If you have an appointment with a doctor coming up, then it’s not going to affect your application for insurance.

If you have any kind of test or procedure coming up then it’s best to wait to apply. 

The reason is because if you wait to apply until after you get bad news from the test then you’ll be declined for immediate coverage just as if you’re applying before the test/procedure . 

It’s the same outcome.  

Therefore, you’re better off playing it safe so that you can get more life insurance for cheaper after the test/procedure reveals no news or good news! 

Otherwise, you’ll pay more for less because guaranteed approval life insurance policies are more expensive than immediate day one coverage life insurance policies.

This is due to the fact that insurance companies don’t want to risk insuring someone who signs up right before they do a test only to find out they have a serious condition. 

Also, insurance companies don’t want to let someone sign up right before a procedure just in case something goes wrong.

Don’t wait until it’s too late to get a quote . You can schedule a call with me now by clicking here. 

#4 Here's what really matters if you require assistance with ADLs:

You will be able to obtain a guaranteed approval policy with AIG if you need assistance with any ADL (Activities of Daily Living).

Immediate coverage will be declined if you need assistance with an ADL.

The following is a list of ADLs insurance companies consider on their applications:

  • Bathing: personal hygiene and grooming.
  • Dressing: dressing and undressing.
  • Transferring: movement and mobility.
  • Toileting: continence-related tasks including control and hygiene.
  • Eating: preparing food and feeding.

If you require assistance from anyone for any of these ADLs on a daily basis, then AIG is your best bet.

#5 Reapplying: it's not as easy as you think:

If you sign up – then cancel and sign up again with the same company; you’ll find that you may end up declined.

This happens more often than I’d like to describe. People get cold feet , or they don’t budget properly.

They miss their payment because of insufficient funds.

By the time the insurance company finds out – you have no money left from your monthly social security check.

Now you can’t catch up the payment until next month. 

The problem is that the insurance company is not going to wait.

You’ll have to sign up for a new policy or just let it go. You’re not insured 30 calendar days after your missed payment. 

This is called the grace period.

For example; if your payment is due May 1st and you miss it, the grace period ends May 31st. 

If you die during the grace period, your beneficiary WILL receive the money, minus the payment that you didn’t make. 

After the grace period is over, then your policy is fully cancelled. 

You have to make payments for years to build up cash value so that if you miss a payment here and there, THEN you will avoid losing your policy .

Your payments build up like a savings account each month. That’s called “cash value”. 

There is no cash value within the first 2 years. 

This is to cover the cost of insuring you. Insurance companies have to generate a profit in order to stay in business. 

After the first 2 years, cash value starts to build up quickly and nicely!

If you stop making your payments, then insurance companies will just withdraw the payment from the cash value. This will allow you to remain insured. 

Insurance companies decline folks who keep reapplying with them after they lapse because:

  • It appears fraudulent since many applicants consistently try to make fake claims on unpaid policies or with fake information. 
  • It’s unprofitable because there are lots of costs involved with setting up a new policy.
  • It slows down a company from servicing their committed customers that rely on their valuable services which are limited.

What are some real examples of real prices from real companies?

You’ll get a better price if you stop shopping for the cheapest rate.

Instead, see who you qualify with first because you may miss the opportunity to get approved by giving up on searching after getting declined by a cheaper company. 

A lot of folks reading this who already have life insurance may not realize that they had signed up for a 2 year waiting period which means –  unless they die in an accident for the first two years…the policy WON’T pay out!!!

The classic example I see all the time is Mutual of Omaha declining someone who ends up getting approved by CVS Aetna.

Mutual of Omaha is usually the cheapest. It’s also the most difficult to get approved by. 

If you can qualify for Mutual of Omaha, then great!!! If not, do not stop there because CVS Aetna is the best backup choice.

For example; if you were diagnosed with diabetes before the age of 50, you will not be approved by Mutual of Omaha for immediate coverage. You’ll be approved for a 2 year waiting period that costs more than CVS Aetna who WILL approve you for immediate day one coverage!

As an example, I’ll lay out the prices for both companies on a $10,000 policy.

The following 4 tables are broken down by price/age/non tobacco user (NT)/tobacco user (T) between Mutual of Omaha and CVS Aetna.

(Please note, these prices are as of 10/08/2021 and insurance companies can change their prices at anytime. We have no control over that.)

Table 1
For a Mutual of Omaha $10,000 Policy  
AgeMale (NT)Female (NT)
Table 2
For a Mutual of Omaha $10,000 Policy  
AgeMale (T)Female (T)
Table 3
For a CVS Aetna $10,000 Preferred Policy
AgeMale (NT)Female (NT)
Table 4
For a CVS Aetna $10,000 Preferred Policy
AgeMale (T)Female (T)

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