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Insurance Carrier: Minnesota Life Insurance Company
State: Illinois

Consumer Complaint:

I refinanced my home and applied for mortgage life insurance for $110,000.00. I was rejected for the reasons stated: history of heart surgery, hypertension, and weight. I contacted my attorney and he agreed we should challenge this decision. I called my primary care physician and the cardiologist and they both sent me dictated signed letters stating that I exercise regularly, eat right, and am in very good physical condition. I do not have a weight issue and my hypertension is under complete control I sent them a note stating my challenge, the two written notes from my physicians and stated that I was also going to contact your department. I feel I am being discriminated against just because I had heart surgery and do not feel the insurance company made a fair judgment. The heart surgery was in June 2005 and I have always been an exercise+C9r for the last 25 years. I am 55 years old and still exercise four times a week and eat healthy.

Insurance Expert Answer:

I can understand why you were rejected for mortgage TERM life insurance. The mortgage term products are sometimes sold with limited underwriting and the underwriters see the applications as black or white, and not in shades of gray. Term is essentially very cheap coverage (per dollar of premium per dollar of face amount) and many companies only issue it to folks with a clean health history. Yours is not clean or black or white --it's gray.

Sorry, you may think you're a terrific risk, but an insurance company looks at the actuarial data, and you're not a terrific risk to them. And you can't convince them otherwise. BUT there are hundreds of insurance companies and if you need or want insurance, go to a broker (who represents many companies) and ask the broker to shop around. I'm sure you'll find someone that will write you, although at a higher than usual premium.

Why a broker rather than an agent for company X? Because a good broker knows what companies are likely to treat someone with your history more favorably.