At we regularly receive enquiries from people who have been declined insurance by their superfund/another insurer or have been offered loadings/exclusions. Whilst these are sometimes unavoidable, it’s important to remember that each insurer has different underwriting guidelines, so a decline by one doesn’t necessarily mean you’d be declined by all. It’s advisable to engage an insurance adviser to speak to all the relevant underwriters to get a pre-assessment.

Our article covers the most common reasons for declined life insurance and why other risk insurance policies may be declined by insurers.

Insurance Broker

Below are the most common reasons for declined life insurance & risk insurance policies.

  1. Pre-existing health issues- These can include things like a previous cancer diagnosis, diabetes, existing mental health conditions or diabetes. 
  2. Age- Some insurance policies have age limits, especially for Income Protection, Trauma and TPD insurance. Generally the older the insured person, the higher the premium given their risk of claiming is higher.
  3. Occupation- Some occupations such deep sea divers and those in the military/police force may find it hard to take out any insurance cover at all whereas some occupations may only be available with limited terms such as restricted benefit periods for Income Protection or only a certain type of TPD being offered.
  4. Travel to high risk areas- Extended travel to high risk areas or part time residence in such areas may attract either a loading from the insurer or the insurance cover may be outright declined.
  5. Hobbies- Engaging in high risk hobbies such as base jumping or recreational flying can be a reason for denial. Other pastimes such as football or martial arts may only be available to certain occupations such as those in a sedentary role
  6. Family History- Any genetic conditions or family history has to be disclosed in the insurance application. These answers can influence the underwriting decisions.
  7. Substance Abuse- Current or recent substance abuse can lead to an insurance application being declined.

If you have been declined insurance cover elsewhere or would like to review your current policies please get in touch.

– The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS.