Life Insurance For Bipolar: Is It Possible?

Bipolar disorder is a mental health condition characterised by mood swings ranging from depressive lows to manic highs. While it is possible for someone with bipolar disorder to obtain life insurance, it can be challenging. In the past, people with bipolar disorder were frequently denied life insurance, but advancements in treatment and growing awareness of the disorder have made it easier for those with bipolar disorder to find coverage.

Life insurance companies consider mental health in their underwriting process, and having bipolar disorder may result in increased premiums. The rating factor depends on the frequency, severity, treatment, and specific details of the condition. The underwriting process may be longer and more complex, and it is important to disclose your diagnosis and treatment history when applying for life insurance.

There are several types of life insurance policies available for individuals with bipolar disorder, including term life insurance, whole life insurance, group life insurance, and guaranteed issue life insurance. The availability and eligibility for these policies depend on the stability of the condition and other factors. It is recommended to work with an agent or broker who can help navigate the process and find the best options.

Life Insurance for Bipolar Disorder: Availability and Cost

Bipolar disorder is a mental health condition characterised by mood swings ranging from depressive lows to manic highs. While it is possible for someone with bipolar disorder to obtain life insurance, it can be challenging. Life insurance companies consider bipolar disorder a pre-existing condition and view it as a critical illness due to the higher risk of suicide. As a result, individuals with bipolar disorder may face higher premiums, application postponement, or even denial of coverage. However, advancements in drug treatments and a better understanding of the disorder have made it easier for those with bipolar disorder to find life insurance coverage.

Availability of Life Insurance for Bipolar Disorder

People with bipolar disorder can obtain life insurance, but the availability and eligibility depend on the severity and stability of their condition, as well as other factors such as employment status and medical history. Some life insurance companies simply choose not to insure people with bipolar disorder due to the associated risks, including a shorter life expectancy and higher suicide rates. However, there are favourable carriers that do provide coverage for individuals with bipolar disorder.

Factors Affecting Availability

Several factors influence the availability and eligibility of life insurance for individuals with bipolar disorder:

• Type and Severity of Bipolar Disorder: The type of bipolar disorder, such as Bipolar 1 or Bipolar 2, matters to insurers. Bipolar 1 disorder presents more intense and significant manic and depressive episodes, which may hinder normal activities like working.
• Stability and Treatment: Insurers look for stability in managing the condition and compliance with treatment plans. They may inquire about hospitalisations, medication changes, and the impact on daily activities.
• Employment Status: Having gainful employment demonstrates that an individual can manage their condition while maintaining a full-time job. This can work in their favour during the underwriting process.
• Medical History: In addition to bipolar disorder, other diagnosed medical conditions or mental illnesses, such as anxiety or depression, may impact the underwriting decision.
• Suicide Attempts or Ideation: Any history of suicide attempts or ideation can significantly influence the underwriting outcome and may result in a decline or higher premiums.
• Medication: The type and number of medications play a role in the underwriting decision. Antipsychotic drugs or multiple medications may indicate an unstable situation.

Cost of Life Insurance for Bipolar Disorder

Life insurance rates are typically higher for individuals with bipolar disorder. The increase in premiums can vary depending on the stability of the individual's condition. Here are some estimated costs for a 40-year-old male and female needing $250,000 of term life insurance with a mild to moderate case of bipolar disorder:

• Male: $40 to $60 per month
• Female: $30 to $55 per month

These estimates are subject to change and depend on individual circumstances. It is essential to shop around and compare quotes from different insurance providers, as rates can vary significantly.

Types of Life Insurance for Bipolar Disorder

There are several types of life insurance available for individuals with bipolar disorder:

• Fully Underwritten Life Insurance: This option is available for individuals with mild bipolar disorder who are stable and compliant with their treatment. It involves a comprehensive underwriting process, including medical examinations and verification of medical records.
• Simplified Issue Life Insurance: This option is suitable for those who don't need a large amount of coverage. It has a simpler underwriting process and is often used for burial insurance or final expense policies.
• Burial Life Insurance: This type of insurance is available for individuals with moderate to severe bipolar disorder. It is easy to apply for and usually doesn't require disclosing bipolar disorder, making it a good option for those who have been denied traditional coverage.
• Guaranteed Issue Whole Life Insurance: This option is ideal for individuals with severe bipolar disorder who have been denied coverage. There is no underwriting process, and approval is guaranteed. However, there is usually a waiting period of two years before the full death benefit is payable.
• Group Life Insurance: This type of insurance is often offered through employers or other groups and does not require a medical examination, making it an attractive option for individuals with bipolar disorder.

Factors Affecting Life Insurance Eligibility and Premiums

Life insurance eligibility and premium rates are influenced by various factors, including an individual's health, age, lifestyle choices, and occupation. Here are some key considerations that determine eligibility and premiums, particularly for individuals with bipolar disorder:

Health Status

An individual's health is a critical factor in determining life insurance eligibility and premiums. When it comes to bipolar disorder, the stability of the condition, treatment history, and overall health are essential. Insurers will assess the severity of the disorder, how well it is being managed, and any associated health risks, such as substance abuse or other mental health issues. Maintaining stable mental health, adhering to treatment plans, and demonstrating overall health can improve eligibility and secure more favorable rates.

Type of Policy

The type of life insurance policy chosen also affects eligibility and premiums. Individuals with bipolar disorder may opt for term life insurance, which provides coverage for a specific period, or whole life insurance, which offers lifelong coverage. Term life insurance is generally more affordable, especially for younger individuals, while whole life insurance tends to be more expensive but provides permanent coverage. The choice depends on the individual's needs, health status, and financial situation.

Medical Examination

Some life insurance policies require a medical examination, while others offer no-exam options, though these might come with higher premiums. The medical exam typically involves evaluating the individual's physical and mental health, including blood tests, urine samples, and a review of medical records.

Disclosure of Information

When applying for life insurance, it is crucial to disclose relevant information about one's health, including the diagnosis of bipolar disorder, treatment history, hospitalizations, medication, and how the condition is managed. Being transparent and providing accurate information is essential for a smooth underwriting process and ensuring the validity of the policy.

Underwriting Process

The underwriting process is a critical aspect of determining eligibility and premiums. Insurers will assess the risk associated with insuring an individual with bipolar disorder by considering factors such as health status, treatment compliance, and stability of the condition. The underwriting process may be more complex and lengthy for individuals with bipolar disorder, and it may involve a more detailed analysis of their medical history and current health condition.

Specialized Insurance Providers

Some insurance providers specialize in high-risk policies or have more experience underwriting policies for individuals with mental health conditions. Working with these specialized insurers may increase the chances of obtaining coverage and securing more favorable rates for individuals with bipolar disorder.

Suicide Exclusions

Life insurance policies typically include a suicide clause, which states that the insurer will not pay the death benefit if the insured dies by suicide within the first two years of the policy. This clause is designed to prevent individuals from purchasing life insurance with the intention of committing suicide. After the initial two years, death by suicide is usually covered, and the life insurance carrier pays the full death benefit.

Group Coverage

Group life insurance, often offered through employers or other organizations, can be an attractive option for individuals with bipolar disorder. It typically does not require a rigorous application or medical exam, making it easier to obtain coverage. Group life insurance policies provide coverage regardless of health conditions, making it a viable option for those with bipolar disorder.

Guaranteed Issue Policies

Guaranteed issue life insurance policies are another option for individuals with bipolar disorder who may have difficulty obtaining traditional coverage. These policies are guaranteed to be issued, regardless of health status, but they come with higher premiums and lower coverage amounts. They can be a fallback option if other forms of life insurance are not available.

Age and Other Demographics

Age is a significant factor in life insurance eligibility and premiums. Younger individuals generally qualify for lower rates, as the risk of death is lower. Additionally, demographics such as gender and family medical history can also influence eligibility and rates. For example, women with bipolar disorder are more likely to experience rapid cycling of mood episodes, which may be considered in the underwriting process.

In conclusion, while bipolar disorder may impact life insurance eligibility and premiums, there are various factors that individuals can consider to improve their chances of obtaining coverage and securing more favorable rates. Maintaining stable mental health, adhering to treatment plans, disclosing relevant information, and working with specialized insurance providers can all contribute to a more positive outcome when applying for life insurance with bipolar disorder.

Underwriting Process for Bipolar Disorder

The underwriting process for bipolar disorder involves reviewing an applicant's situation and application, analysing their risk of an early death, and then making an offer or declining to insure them if the risk is too great. The process is more complex for those with bipolar disorder, as insurers consider their mental health in addition to other factors such as age, physical health, lifestyle and occupation.

The likelihood of being approved for life insurance depends on the type and severity of the bipolar disorder, as well as how well it is being controlled. Insurers will look at the following:

• Severity of the condition
• Height and weight
• Tobacco or drug use
• Other medical conditions such as diabetes, anxiety or depression
• Driving records
• Prescription drug databases
• Medical history

In addition, insurers will require a medical exam, blood draw, urine sample, and medical records to ensure the applicant's bipolar disorder is stable and they are following their doctor's treatment plan.

Gainful Employment

Having gainful employment can improve the chances of being approved for life insurance, as it demonstrates that the applicant can manage their condition while maintaining employment. However, other factors such as recent hospitalisation due to their condition may alter the underwriting outcome.

Hospitalisation

Hospitalisation due to bipolar disorder could impact the underwriting decision. If hospitalisation has occurred within two years of the application, a rating or decline on traditional life insurance is likely. If it has been between two and five years, a moderate to high table rating can be expected, and if it has been over five years, a low table rating is likely.

Suicide Attempts or Ideation

Suicide attempts or ideation that led to hospitalisation could change the underwriting decision, with most carriers declining applications if this has occurred. However, guaranteed issue life insurance may still be an option in these cases.

Type and Number of Medications

The type and number of medications prescribed for bipolar disorder will also be considered during the underwriting process. The use of antipsychotic drugs will have a larger impact on the decision than mood stabilisers such as lithium. Taking multiple medications for bipolar disorder may be seen as an unstable situation by traditional life insurance underwriters.

Treatment Plan

Following a treatment plan is beneficial for an application, as it demonstrates stability and a lack of impact on everyday activities. First-line psychotherapy treatment is preferable, and interruptions to normal daily activities will negatively impact the application. More intense treatment plans like electroconvulsive therapy will likely result in a rating or decline.

Type of Bipolar Disorder

The type of bipolar disorder also matters, with bipolar 1 disorder presenting more intense and significant manic and depressive episodes than bipolar 2 disorder. Carriers may not distinguish between the two, which can hinder the chances of approval.

Other Mental Illnesses or Medical Conditions

Additional diagnoses of mental illnesses such as anxiety or depression, or other medical conditions such as diabetes, sleep apnea or heart issues, will also impact the underwriting decision.

Simplified Underwriting

Simplified underwriting is available for those who do not want a large amount of life insurance. This process involves verifying medical history, confirming prescription drug usage, reviewing answers to health questions, and conducting a personal phone interview. The decision is typically made within a day, and the death benefit amounts are usually lower, around $25,000 to $50,000.

Fully Underwritten Life Insurance

For those seeking more than $100,000 of life insurance, a fully underwritten application process is required. This involves a paramedical exam and a detailed health history. The carriers will verify information through databases such as prescription drug databases.

Table Ratings

Most people with bipolar disorder who are approved for life insurance receive a table rating, which increases their premium rates. The table rating is based on statistics such as the documented shortened lifespan of someone with bipolar disorder and the high rate of suicide.

Types of Life Insurance for Bipolar Individuals

Life insurance for people with bipolar disorder can be tricky, but it is possible to get coverage. The options available to you will depend on several factors, including your budget, the length of coverage you need, and your overall health. Here are some types of life insurance that may be suitable for individuals with bipolar disorder:

Term Life Insurance

Term life insurance offers coverage for a set period, usually between 10 and 30 years. This type of insurance is generally more affordable than permanent life insurance, especially if you are younger and in good health. Term life insurance does not build cash value, and if you outlive the policy, your beneficiaries will not receive a payout. However, it can be a good option if you are looking for coverage during your prime working years or to cover specific debts or expenses, such as a mortgage.

Permanent Life Insurance

Permanent life insurance, such as whole life insurance or universal life insurance, provides coverage for your entire life as long as you pay the premiums. It tends to be more expensive than term life insurance but offers a cash value component. Whole life insurance has fixed premiums and a guaranteed rate of return on the policy's cash value. Universal life insurance, on the other hand, offers more flexibility, allowing you to adjust your premiums and death benefit within certain limits.

Guaranteed Issue Life Insurance

If you have been turned down for coverage due to your bipolar disorder, guaranteed issue life insurance may be an option. This type of insurance does not require a medical exam or health questionnaire, and approval is guaranteed if you meet the age requirements (typically 50 to 80). However, the death benefits are usually capped at a lower amount, and there may be a waiting period before your beneficiaries are eligible for the full death benefit.

Group Life Insurance

Group life insurance is often offered by employers as part of their benefits package. These policies are typically inexpensive and easy to obtain, with no medical underwriting required. The main drawback is that the policy is only active while you are employed with the company. If you change jobs, you may lose your coverage.

When considering life insurance as an individual with bipolar disorder, it is important to shop around and compare different insurers and policy types. Working with a licensed agent or broker who has experience in this area can also be beneficial. They can help you navigate the process and find a policy that suits your needs and circumstances.

Application Process and Required Disclosures

The application process for life insurance when you have bipolar disorder can be complex and often involves providing extensive information about your mental health history. Here are the key steps and disclosures typically involved:

• Consulting a Professional: Given the challenges of obtaining life insurance with bipolar disorder, it is advisable to consult a financial advisor or insurance broker with experience in high-risk cases. They can guide you through the process and help you find insurers that are more accommodating of mental health conditions.
• Medical Documentation: Comprehensive medical records are crucial. Gather records relating to your diagnosis, treatment history, medication, and periods of stability. These details can demonstrate effective management of your condition and potentially lower your premiums.
• Application Forms: Expect to fill out detailed application forms that cover your personal information, lifestyle, and health status. Be prepared to answer questions about your bipolar disorder diagnosis, treatment history, hospitalizations, medications, and their effectiveness. Remember that honesty is essential, and any misrepresentation or omission can lead to the denial of claims or cancellation of the policy.
• Attending Physician's Statement (APS): Most life insurance companies will require an APS, which is a form completed by your doctor or healthcare provider. It confirms your diagnosis, treatment history, and current health status. This form plays a significant role in the underwriting process.
• Medical Examination: Some insurers may require a medical examination, including a psychiatric evaluation, as part of the application process. They may also request access to your medical records to assess the severity and stability of your condition.
• Underwriting Assessment: Life insurance companies use underwriting to assess the risk associated with insuring you. With bipolar disorder, you may be classified as a high-risk applicant, which can affect your eligibility and premium rates. The underwriters will evaluate your condition's history, severity, treatment, and impact on your daily life and work.
• Premium Rates and Policy Types: If approved for coverage, individuals with bipolar disorder often face higher premium rates due to the perceived higher risk. The premium amount will depend on factors such as your medical history, severity of bipolar disorder, treatment compliance, and other health indicators. The type of policy available to you may also vary, with term life insurance policies often being more accessible than whole life or universal life policies.
• Waiting Periods: Certain policies may include waiting periods, typically ranging from a few months to a few years. During this time, the full death benefit may not be payable if the insured individual passes away.
• Specialized Insurers: Consider insurers that specialize in high-risk applicants, including those with mental health conditions. These companies may be more likely to offer you coverage, although the premiums tend to be higher.
• Group Insurance: If you are employed, group life insurance through your employer can be an option. These policies often have less stringent underwriting requirements and may not require a medical examination, making it easier to obtain coverage. However, coverage amounts can be limited, and your employment status may impact the policy's continuity.

Frequently asked questions