Life Insurance Options For People With Ptsd

Post-Traumatic Stress Disorder (PTSD) is a mental health condition that can develop after a person has experienced or witnessed a traumatic event. While it is true that many life insurance companies automatically decline applications from those diagnosed with PTSD, there are a few companies that will consider those with the condition as potentially eligible for traditional coverage.

PTSD is a pre-existing condition and is considered high-risk by life insurance companies, as it is associated with a higher risk of suicide and substance abuse. This means that those with the condition may face higher premiums or be declined coverage altogether. However, it is important to note that each insurance company has its own underwriting guidelines and policies, and the impact of a PTSD diagnosis can vary.

If you have PTSD, working with an independent insurance agent who understands the nuances of applying for life insurance with the condition is crucial. They can help you find insurers who are more accommodating or lenient towards insuring individuals with PTSD, increasing your chances of securing coverage.

Life insurance companies' PTSD application process

Life Insurance Companies PTSD Application Process

When applying for life insurance with PTSD, it is recommended that you work with an independent insurance agent who can help you navigate the process and find the best policy for your circumstances. A good independent agent will know which insurance companies are comfortable covering people with PTSD and can help make the application process as easy as possible.

During the application process, you will be required to undergo a medical exam and possibly a psychological examination. You will also need to disclose your PTSD diagnosis and provide detailed information about your medical history and doctor's records. It is important to be honest about your condition when applying for life insurance. Lying on the application can be considered fraud and can lead to higher rates or exclusion from coverage.

The life insurance underwriter will ask a series of questions to assess your risk level and determine your health class rating. These questions may include:

• When were you initially diagnosed?
• Is your condition mild, moderate, or severe?
• Have you developed depression, anxiety, or other psychological or neurological conditions?
• Has your PTSD had detrimental effects on your work?
• What medications have you been prescribed, and do you take them regularly?
• How often do you see your doctor?
• Have you ever seen a psychiatrist?
• Are you self-medicating with drugs or alcohol?
• Have you had any suicidal thoughts or attempts?
• Have you ever been hospitalized because of your PTSD?
• Are you currently collecting or have you collected private or government disability benefits?

The underwriter will be looking for proof that your condition is under control and that you are under the care of a medical professional. They will also assess your overall lifestyle, including your employment history, physical activity level, and any use of alcohol, tobacco, or drugs. Being employed, physically active, and free of substance use will result in more favourable rates.

Based on the information you provide, the underwriter will determine your health class rating, which will impact your premiums. If you have mild PTSD that is well-controlled without any hospitalizations or suicide attempts, you will typically qualify for a standard rate class. The more severe your PTSD is and the more impact it has on your life, the lower your rating will be, and the higher your premiums will be.

If you have severe PTSD, your insurance agent may recommend a guaranteed issue life insurance policy, which has a quick and easy application process and does not require a traditional medical underwriting process.

PTSD's impact on life insurance premiums

PTSDs Impact on Life Insurance Premiums

Post-Traumatic Stress Disorder (PTSD) is a mental health condition that can develop after a person has experienced or witnessed a traumatic event. It is a pre-existing condition that can impact a person's life insurance premiums. While it is possible to obtain life insurance with PTSD, the severity of the condition will play a significant role in determining the premium rates and eligibility.

Factors Affecting Premiums

The impact of PTSD on life insurance premiums depends on several factors, including:

• Severity of PTSD: The premium rates increase with the severity of PTSD. Mild PTSD that is well-controlled, without hospitalizations or suicide attempts, usually falls under the standard rate class. More severe forms of PTSD may lead to higher premiums or even declination of coverage.
• Medical History: Life insurance companies will consider an individual's medical history, including the date of diagnosis, treatment methods, hospitalizations, and any co-existing medical conditions.
• Lifestyle Habits: Lifestyle choices, such as alcohol consumption, tobacco use, and recreational drug use, can also influence premium rates. This is because there is a known correlation between PTSD and substance abuse.
• Employment Status: Underwriters will assess an individual's employment history and ability to maintain a steady job despite their PTSD diagnosis. Unemployment or frequent job changes may negatively impact premiums.
• Overall Health: The overall health and age of the applicant are also taken into account, as these factors contribute to the assessment of risk by the insurance company.

Working with an Independent Agent

It is advisable to work with an independent life insurance agent when seeking coverage with PTSD. These agents are familiar with the nuances of underwriting PTSD and can help individuals find the most favourable policies. They can guide applicants through the application process, making it less daunting and increasing the chances of approval.

Alternative Options

For individuals with severe PTSD who face challenges in obtaining traditional life insurance, there are alternative options available:

• Guaranteed Issue Life Insurance: This type of policy does not require a medical examination or health history and is designed for individuals who may not qualify for traditional life insurance. However, these policies often have lower coverage limits and a graded death benefit, with a waiting period for coverage of natural causes.
• Accidental Death Coverage: This type of policy provides coverage in the event of the policyholder's death resulting from an accident. It is affordable and accessible, as no medical underwriting is required.

Best life insurance companies for people with PTSD

People with Post-Traumatic Stress Disorder (PTSD) often worry about their future, including whether they will qualify for life insurance. However, it is possible to obtain life insurance with PTSD. The application process will involve a medical exam and possibly a psychological evaluation, and the premium will depend on the severity of the condition.

Prudential

Prudential is one of the best life insurance companies for people with mental health disorders, including PTSD. It has a strong financial ability to pay out life insurance claims, with an A+ AM Best rating. Prudential offers competitive rates for medical conditions, including moderate or severe anxiety, depression, and bipolar disorder. They also have lenient underwriting guidelines for people with multiple pre-existing health conditions. Prudential offers term and universal life insurance options, with term coverage starting at $100,000 for ages 18 to 75.

Pacific Life

Pacific Life is another excellent option for people with PTSD, offering competitive rates for those with mild to moderate anxiety or depression. They also provide life insurance for people with bipolar disorder and schizophrenia, although a suicide attempt within the last two years will result in denial of the application. Pacific Life offers term, whole, and universal life insurance, with coverage starting at $50,000. They have high customer satisfaction and financial ratings, including an A+ AM Best rating.

Legal & General America

Legal & General America is well-suited for people with well-controlled anxiety and depression, offering preferred rates for those not currently on medication. They may also consider individuals with bipolar disorder diagnosed over a year ago. Legal & General America offers term and universal life insurance, with term coverage starting at $100,000 for ages 18 to 70, and universal coverage starting at $50,000 for ages 20 to 85. They have an A+ AM Best financial rating, indicating a strong track record of paying life insurance claims.

USAA Life Insurance

USAA life insurance is specifically designed for veterans and active service members with PTSD. They offer low-cost term life insurance with a maximum face amount of $400,000 and do not require an application or medical underwriting. USAA life insurance is available to active, retired, and honorably separated military personnel.

AIG (American General Life Insurance Company)

AIG offers a guaranteed acceptance policy for individuals with PTSD, with a two-year waiting period. This option may be suitable for those who have been declined by other life insurance companies due to severe PTSD.

In addition to these companies, it is worth considering guaranteed issue life insurance if you have been turned down for coverage due to your mental health. This type of policy does not require a medical exam or health questionnaire, and approval is guaranteed if you meet the age requirements, typically between 50 and 80. However, the death benefits are usually capped, and there may be a waiting period before your beneficiaries can receive the full death benefit.

Life insurance underwriting for PTSD

Post-traumatic stress disorder (PTSD) is a mental health condition that can develop after a person has experienced or witnessed a traumatic event. It is a chronic condition that can last several months or years, and it is often treated with medication, psychotherapy, or a combination of the two. While it is true that many life insurance companies automatically decline applications from those diagnosed with PTSD, there are a few companies that will consider those with the condition as potentially eligible for traditional coverage.

Application Process

Some people find it scary and embarrassing to disclose their PTSD diagnosis when applying for life insurance, but it is essential to be honest about your condition. You will be required to undergo a medical exam, and possibly a psychological examination, which will uncover any medications or conditions you have.

Questions from Underwriters

Underwriters will ask a series of questions before approving you for life insurance. These may include:

• When were you diagnosed with PTSD?
• Are you currently taking medications for your PTSD?
• Do you seek treatment from your doctor?
• Have you seen a psychiatrist?
• Have you had thoughts of suicide?
• Is your condition mild or severe?
• Have you been hospitalized for PTSD?
• Do you take medications and what are they?
• Have you attempted suicide?
• Do you see your doctor, psychologist, or counsellor regularly?
• What is your employment history since the traumatic event?
• What is your level of physical activity?
• Do you use alcohol or tobacco?

Rating

If you have been diagnosed with mild PTSD, are controlling your condition with medication or counselling, and you have not been hospitalized recently, you can expect to receive a Standard health class rating. This rating assumes you are in good health overall and don't smoke.

If you have been hospitalized for PTSD recently (within 12-24 months) or require substantial medication to control your condition, you can expect a Mild Sub-Standard or Sub-Standard health class rating. You'll be considered an impaired risk, but if you continue to keep your condition under control and avoid hospitalization, your rating could be adjusted and your premiums reduced.

Individuals who experience severe PTSD symptoms and frequent hospitalizations may have difficulty being approved for life insurance by most companies. If you fall into this category, you should work with an experienced life insurance agent before applying.

Alternative Options

If you are unable to qualify for a traditional term or whole life insurance policy due to your PTSD or other health conditions, there are alternative options available. One alternative is a guaranteed issue life insurance policy, which does not require a medical examination or ask questions about your health history. As a result, these policies are often more expensive and may have lower coverage limits. Another option is an accidental death policy, which provides coverage in the event of the policyholder's death resulting from an accident.

How to apply for life insurance with PTSD

If you have been diagnosed with Post-Traumatic Stress Disorder (PTSD), you may be concerned about securing life insurance. While it is true that many life insurance companies automatically decline applications from those diagnosed with PTSD, there are a few companies that will consider those with PTSD as potentially eligible for traditional coverage.

The Application Process

Firstly, it is important to be honest about your condition when applying for life insurance. You will be required to undergo a medical exam, and possibly a psychological examination, which will uncover any medications or conditions you have. You will also need to disclose your PTSD diagnosis on the application form.

Questions to Expect

An underwriter will ask you a series of questions to assess your risk level and determine your premium rates. These may include:

• When were you diagnosed with PTSD?
• What medications are you taking for your PTSD?
• Do you regularly see a doctor, psychologist, or counsellor?
• Have you ever been hospitalised due to your PTSD?
• Have you ever attempted suicide?
• Are you currently working?
• Do you have a history of substance abuse?
• Have you ever been diagnosed with depression?
• Are you currently receiving disability benefits?
• Do you have a driving record, and if so, is it clean?
• What are the details of the traumatic event that triggered your PTSD?
• What symptoms are you experiencing?
• How long have you had PTSD?
• What treatment have you received?
• What is your current state of mental health?

Factors Affecting Your Application

The more stable and controlled your PTSD is, the more likely you are to be approved for life insurance. Regular check-ups with your doctor are, therefore, a good thing. Being employed, physically active, and free of alcohol and drugs will also get you the best health class rating.

Finding the Right Company

It is important to choose the right company to work with when applying for life insurance with PTSD. People with well-documented mild cases of PTSD can qualify for affordable term life insurance coverage. An independent life insurance agent can help you broker multiple life insurance companies and provide you with advice on which companies view PTSD most leniently.

What to Do if You Are Denied

If your PTSD is severe, you may be declined life insurance coverage. However, this does not mean that you cannot apply again in the future if your PTSD stabilises or improves. In the meantime, there are alternative solutions, such as guaranteed issue life insurance or accidental death coverage, which can offer a limited level of protection for your loved ones.

Frequently asked questions