What to do if a person is declined
You can offer your clients 2 coverage options if one of the proposed insureds is declined:
Option 1: Joint last-to-die coverage
A. Premium calculated based on the age of the approved person minus 1 year
Examples
| Scenario | Sex | Age | Rate | Decision | Premium calculation info |
|---|
| 2 people approved | Male | 64 | Non-smoker | Approved | Male NS, 56 |
| Female | 62 | Smoker |
| 1 person approved and 1 declined | Male | 64 | Non-smoker | Approved | Male NS, 63 |
| Female | 62 | Smoker | Declined |
| 1 person approved and 1 declined | Male | 64 | Non-smoker | Declined | Female S, 61 |
| Female | 62 | Smoker | Approved |
B. Premium calculated based on the age of the approved person minus 1%
If we can't offer option A, it’s still possible to choose joint last-to-die coverage.
The premium is then calculated based on the age of the approved person and is the
same as the premium for individual coverage minus 1%.
How to get option A or option B
You need to create a new illustration and send it to us in the Pending Business tool (PB tool). The policy will be produced with a notice of modification to be signed by the policyowner.
Option 2: Individual coverage
- The policy will insure only the approved person
- The premium is calculated based on the approved person
How to obtain this coverage
You need to create a new illustration and send it to us in the PB tool. The policy will be produced with a notice of modification to be signed by the policyowner.
Change in insurability of the person declined
If the person's health conditions improve, they can request a review of their insurability.
Policies in force for less than 1 year
The change can be made retroactively to the issue date to maintain the insured person's age. In this case, complete an insurance application, including evidence of insurability, and enter a note to that effect in the Special instructions section.
Policies in force for 1 year or more
Proceed by replacement.
