Life insurance is an effective way to secure financial safety, especially for loved ones. There are different life insurance plans with varying eligibility requirements and coverage options. You may ask if it's possible to get life insurance with a history of mental illness and if it can affect insurance rates. This article will answer these questions and explain how to get life insurance coverage despite a history of mental health issues.
Mental health conditions such as depression, anxiety disorders, obsessive-compulsive disorder, bipolar disorder, and schizophrenia all qualify as pre-existing medical conditions and can affect the chance of getting life insurance coverage.
Before insuring individuals with a history of mental illness, life insurance providers consider factors like the severity of the condition, treatment history, management, and the general well-being of the individual.
People with a history of mental illness can still qualify for life insurance packages. However, their insurance coverage may be limited, and they might sometimes pay higher premiums.
How mental illness affects life insurance coverage
When applying for life insurance, most providers consider certain factors before approving an application. These factors can determine how much you’ll pay as a monthly premium. Insurance companies consider factors like income, lifestyle, and health.
When applying for life insurance, insurance companies typically require disclosing any pre-existing medical condition. This also includes mental health conditions. They do this to assess the risk level associated with insuring such individuals.
When applying for life insurance, companies require you to disclose any pre-existing medical condition. They also do this to assess the level of risk associated with insuring such individuals. Below are the common mental health disorders that qualify as pre-existing conditions:
- Anxiety disorders
- Bipolar disorders
- Eating disorders
- Substance abuse
- Obsessive-compulsive disorder (OCD)
- Post-traumatic stress disorder (PTSD)
For individuals with a history of mental health illness, their life insurance application may be affected in different ways. First, they may find it difficult to get approval for the required coverage. Depression and anxiety may affect the ability to qualify for sufficient coverage.
Some mental health conditions may result in denial of life insurance coverage from many providers. You can be denied life insurance due to prescription history. For example, undergoing treatments for schizophrenia or suicide attempts are seen as disqualifying conditions for life insurance by many providers.
This makes life insurance for mental health patients with this history almost inaccessible. Your mental health history can also affect how much you pay for life insurance coverage. When calculating premiums, insurance companies consider the applicant’s health history and other factors. This means people with mental health conditions may pay higher premiums.
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What life insurance companies consider
When you disclose a mental illness history on your life insurance application, life insurance companies consider some factors. These factors determine whether your application will be approved and how much you pay monthly if it gets approved. Here are the typical aspects considered.
The condition and the severity of the illness
Insurers view certain mental health illnesses as more severe than others. This means offering coverage to people with certain mental health conditions can be a higher risk to the insurance company. Also, life insurance companies will assess the severity of the mental health condition before approving applications and determining premiums.
History of treatment
Applicants with a history of long periods of hospitalization, therapy, or medication for mental illness can be viewed as high-risk by life insurance providers.
Life insurance companies will check whether the individual is undergoing therapy or treatment to manage the condition. Also, they consider the type of treatment and the medical records to assess the individual’s situation.
Life insurance companies typically evaluate whether the condition is under control and if recurrences are common. For instance, recent suicide attempts may raise red flags when applying for life insurance.
Depending on the insurance provider and the type of plan you're after, other factors may potentially come into play. For instance, you might be required to provide medical records and undergo a medical examination.
Do I qualify despite my health history?
If you've experienced mental illness, you can get life insurance coverage; however, the type of insurance plan, your health, and the insurer's policies all affect your chance of obtaining appropriate coverage. In some cases, you may be required to pay higher premiums.
Also, some insurance companies specialize in providing life insurance for mental health patients. For instance, you can get plans like depression life insurance under specific insurance packages. Some plans are open to most people who meet the requirements regardless of health history.
Important steps while applying for life insurance
Are you looking for life insurance coverage? Here are some ways to improve your chances of getting approval when applying for life insurance.
Submitting truthful information can be helpful when applying for life insurance. Don't hide details or lie about your mental health history, treatment plans, or other critical information. Providing false information can lead to a denial and be considered insurance fraud if discovered.
Prove you’re managing your condition properly
To increase your chances of qualifying for life insurance coverage, you can show proof that your condition is under control. This can include your treatment history, lifestyle habits, and other useful information. Doing this can show you’re a lesser risk to insure.
Consult an experienced insurance agent
To increase your chances of getting coverage easily, work with a licensed agent. With an insurance agent, you can get the best life insurance plan based on your health history and budget. They’re equipped with the best tools and information to access plans from various providers.
Choose certain types of life insurance
Some insurance plans offer coverage easily, even to those with pre-existing conditions. For instance, guaranteed-issued life insurance plans do not require a detailed medical history or exam.
Group life insurance plans are also good options if you have a history of mental illness.
Mental illness can affect various aspects of an individual’s life. While some conditions may affect your life insurance coverage, you can still get life insurance even with a history of mental illness. The important thing is to get help, arm yourself with the correct information, and shop around for plans that offer the coverage you desire. Also, it’s best to work with an experienced insurance agent to help you get coverage quickly.
Can mental illness affect life insurance?
Yes, mental illness can affect approval and the premium rate when applying for life insurance. However, some plans are open to qualified individuals regardless of their health history.
Does anxiety disqualify you from life insurance?
No, you can get life insurance coverage even if you suffer from anxiety. However, you may pay higher premiums depending on factors like the severity of the condition, the type of plan, and your general health status.
Can I still get coverage while on medication?
You can receive life insurance coverage while on medication. However, you may be required to provide more information about your condition and treatment.
Will I need a medical exam to qualify for life insurance coverage?
This depends on the insurance company and the type of plan you’re applying for. Some plans (e.g., guaranteed issue life insurance) do not require a medical exam, while others do.
- National Alliance on Mental Illness. Mental Health Conditions.
- National Association of Insurance Commissioners. Life Insurance.
- Psychreg. How to Apply for Life Insurance if you Have a Mental Health Condition.
- Life Insurance. Life Insurance for People With Mental Illness.