Can my company’s life insurance company deny my spouse coverage?
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Asked May 21, 2012
The question of legality would have to be determined for each state on an individual level, but the most likely answer is that denying coverage to a spouse is legal. Life insurance, unlike health insurance, can be very restrictive about who can be insured under a group policy. Typically, the spouse of an employee is also eligible for the same insurance privileges, but in the case of life insurance the options may be limited. For example, insurance companies would balk at writing a new group life insurance policy for a person suffering from terminal cancer, over a certain age, or involved in unreasonably risky behavior.
The first approach might be to ask the company why you were denied a life insurance policy. In some cases, the denial could be related to a clerical error, or some simple misunderstanding in how the application was filed. Being denied life insurance because of a missing piece of information or some documents that need to be submitted does not mean you cannot get insurance, only that you have to resubmit the application after corrections have been made.
There are other options available if you are denied life insurance through your spouse's employer. Organizations such as AAA and AARP offer group life insurance policies, or you could buy an individual policy at a slightly higher rate. There are several different types of life insurance policies available, ranging from final expense coverage to universal life insurance policies that allow you to participate in how the premiums are invested. If you are having trouble finding a whole life policy, look into getting a term life policy that covers your expected needs, or settling for a final expense policy that will at least remove that burden from your family.
Answered May 21, 2012 by Anonymous