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Can I get life insurance after filing bankruptcy?
April 03, 2020
There are many life insurance companies out there that will decline you if you are going through a bankruptcy. On a similar note there are also many that will decline you if your bankruptcy was recent.
This is why it is important to vet insurance companies and find the right one to apply with.
Bankruptcy and life Insurance
Due to the recent changes that many of the “major” life insurance companies have made regarding how they view life insurance applications with current or prior bankruptcies histories, we want to explain the following:
- Can I get life insurance after filing bankruptcy?
- Why life insurance companies care if I had a previous bankruptcy.
- How do I get life insurance with a bankruptcy?
Can I get life insurance after filing bankruptcy?
While some of the major life insurance companies won't insure you if you have a bankruptcy on your record, there are plenty of life insurance companies that will.
This means that even if you’ve been told that you don’t qualify for traditional term or whole life insurance because of your current or prior bankruptcy, it may not be the case! Often, you can get life insurance after filing bankruptcy. The key is going with an agency that represents multiple life insurance companies so you have choices.
Why do life insurance companies care if I've had a bankruptcy?
Well, the short and simple answer to this question is that life insurance companies care if have a bankruptcy because they like to use this information.
First, they need to decide if they want to invest the time, money and energy in reviewing an applicant’s life insurance application from the get-go.
And life insurance companies have access to an enormous amount of statistical data associated with those who have had a previous bankruptcy. And when this information is applied to the masses, it can be extremely useful when deciding who they should insure, and at what price they should insure these individuals.
How do I get life insurance with a bankruptcy?
As mentioned previously the life insurance company that you apply with is going to make a big difference.
Most companies have information online regarding the different types of life insurance policies that they offer. Once you know the type you are interested in, you should also calculate how much life insurance you need.
From there you will have a better idea of what you will need and it will be easier to see the companies that offer the right policies for you. From there you will need to learn more about the companies process and how they view bankruptcies.
If you apply with one company and your application is declined, don't worry as you can apply with different companies to get coverage.
If you aren't sure where to start or would prefer to have someone guide you through the process and find the best companies for bankruptcy, you should consider working with a life insurance agent.
If you don't already have an agent, give us a call and we can guide you in the right direction.
