Denial for Life Insurance???

[jmesfv]

What is the name of your state (only U.S. law)? California.

In my application I disclosed that I see a therapist and they contacted her to which she submitted her summary to them as per their request... then I received a denial letter and it said the decision was based upon information provided by her. I read the summary prior to her submitting it. It just stated that I was a patient of hers for 5+years and that I'm seeking mental health treatment. No details were disclosed (per my request). How in the world can they deny someone a life insurance policy who is merely seeking counseling? I get the possibilitiy of unstableness and suicide but that doesn't even make sense because the policy becomes void and no payout is warranted if suicide is deemed cause of death?! So, please explain. Thanks.

[Zigner]

Originally Posted by jmesfv

What is the name of your state (only U.S. law)? California.

In my application I disclosed that I see a therapist and they contacted her to which she submitted her summary to them as per their request... then I received a denial letter and it said the decision was based upon information provided by her. I read the summary prior to her submitting it. It just stated that I was a patient of hers for 5+years and that I'm seeking mental health treatment. No details were disclosed (per my request). How in the world can they deny someone a life insurance policy who is merely seeking counseling? I get the possibilitiy of unstableness and suicide but that doesn't even make sense because the policy becomes void and no payout is warranted if suicide is deemed cause of death?! So, please explain. Thanks.

That could be the answer to your question.

[Dandy Don]

So ask her what she told the insurance company. She may have provided information in spite of your request. Did the insurance company not give you a specific reason as to WHY you were denied coverage?

Shop for a policy with another company. You do NOT have an obligation to disclose to anyone that you see a therapist. In this case your honesty has worked to your detriment.

[ShyCat]

Seriously, Dandy Don, you're advising someone that they should have LIED on their insurance application? You have no business being here giving advice if you don't see a problem with that.

[Dandy Don]

How silly of you to deliberately misintepret. I'm not advising anyone to do anything. She could have volunteered the information.

[jmesfv]

The letter stated the denial was based on my "medical records obtained from xxx (my therapist's name)." That was all it said. I know for a fact that she did not go against my wishes and only submitted what I pre-read and approved for submission.

I don't think you were telling me to lie next time or anything but I agree... my revealing that i seek counseling brought this on. It just doesn't make sense as to why they would deny someone based on seeking counseling. I just didn't know that they actually COULD deny you based on that... I guess that's my whole question... is it legal?

[Zigner]

Originally Posted by jmesfv

The letter stated the denial was based on my "medical records obtained from xxx (my therapist's name)." That was all it said. I know for a fact that she did not go against my wishes and only submitted what I pre-read and approved for submission.

I don't think you were telling me to lie next time or anything but I agree... my revealing that i seek counseling brought this on. It just doesn't make sense as to why they would deny someone based on seeking counseling. I just didn't know that they actually COULD deny you based on that... I guess that's my whole question... is it legal?

It could be that you refused to allow any information to be given...

[ShyCat]

Originally Posted by Dandy Don

How silly of you to deliberately misintepret. I'm not advising anyone to do anything. She could have volunteered the information.

Right. There were no questions on the application about it; the OP simply decided to reveal this for no reason. Yep, there's a space right there for a little essay on what the applicant wants to share with the insurance company. Highly entertaining stuff, I'm sure.

[jmesfv]

Originally Posted by Zigner

It could be that you refused to allow any information to be given...

No, information was given... they were asking for 5 years of case notes which never in a million years would any therapist release or advise to release. So we called insurance company and they said a summary would be sufficient so that's what she wrote. It included treatment plan, history and diagnosis.

[cbg]

How in the world can they deny someone a life insurance policy who is merely seeking counseling?

They can deny the policy because no law prohibits it. In 48 out of 50 states, approval of an insurance policy is not guaranteed. The company can turn you down if they feel you are a risk, and they get to decide who is a risk.

This one turned you down, so apply at another. They don't all use the same standards.

[Betty]

Agree with cbg. I was a life ins. underwriter & we always had a reason when we denied coverage - they apparently felt you were a decline risk because of information they developed or possibly they didn't have enough information to make an approval on. It's hard to say - we can't see your application & file.

All companies do not have the same underwriting criteria - try another co. as suggested. However, do not lie on any application for ins.

[Dandy Don]

Also, do not volunteer any extra information that they don't specifically ask for. Do they really need to know that you go to a therapist?

[Betty]

Speaking as an underwriter, yes - we would really need to know that they are seeing a therapist. Our applications were worded so that we would pick up this information if applicant answered all questions truthfully.