F.A.Q. #17: What happens when one is declined for life insurance? Is it really that bad?

The way some insurance agents act about getting a decline, almost makes it like the proverbial "kiss of death" of someone ever getting life insurance ever again.

Not entirely true.

First, yes, your MIB or Medical Information Bureau file is notated that you have been declined for life insurance.

If you believe that your file has errors, you can request a copy of your file and file a dispute. https://www.mib.com/request_your_record.html

https://www.mib.com/how_to_dispute_your_consumer_file.html

Second, what happens after a decline?

Having a decline on your MIB record does NOT mean that you can never get life insurance! The MIB file does not make underwriting decisions. Insurance companies do.

Whenever you apply for life insurance, most applications will ask "Have you ever been declined for life insurance?" You will now have to answer 'yes' and give the details asked for in the application.

The best thing for your agent to do is to ensure a manual underwriter review by including a cover letter to the life insurance application. The more detailed the agent can provide information, the more favorable it is that the company will see the professionalism of the agent and give more careful consideration for approval. The agent should be asking great detailed information for the purpose of bringing a complete picture to the underwriting team.

Is the MIB like a credit report where multiple inquiries can be viewed negatively?

No, but the way many agents talk about it, it makes it feel like it works that way. There is no MIB 'score' like there are credit scores from credit bureaus. However, it will require that you disclose more about the other applications and underwriting may come back with more questions before making a decision.

Declines can be life-saving!

Ervin "Magic" Johnson first learned that he had contracted HIV by applying for life insurance. It was discovered in his blood work. Back in the early 90's, this was considered to be dire news.

As I'm writing this in 2025, he has lived with the virus for over 30 years and last I recall, he is "HIV-undetectable." Now, I can't tell you if he was able to get new life insurance coverage since his diagnosis, but I do know that with new treatments, there are companies that will cover people who have had HIV. Preliminary Underwriting

Many insurance companies offer a way to apply for life insurance without actually applying! Different companies will call it different things, but it's usually a way to do a pre-screen, informal inquiry, or trial application.

Instead of a formal application, the agent submits basic medical and financial information, sometimes with an attending physican statement or APS, to get a tentative underwriting opinion. Unlike a formal application for life insurance, these do not create an MIB entry regardless of the decision.

Bottom line: Don't be afraid to apply for life insurance. If you get a decline, there may be a reason to see your doctor and begin making health changes. If you have been declined, that doesn't mean you can't get covered again in the future. It does mean disclosing more.