Adhd And Life Insurance: Does It Impact Premiums?

Attention Deficit Hyperactivity Disorder (ADHD) is a medical condition that can affect the cost of life insurance. While a diagnosis of ADHD does not disqualify someone from obtaining life insurance, it can lead to higher premiums. This is because people with ADHD are more prone to depression, addictions, and risky behaviours, which can increase the likelihood of death during the policy term. However, the impact of ADHD on life insurance rates depends on several factors, including the severity of the condition, age, health, and the presence of other underlying health conditions.

ADHD severity

The severity of ADHD symptoms is a key factor in developing an effective treatment plan for the patient. The severity of ADHD can be classified as "mild", "moderate", or "severe". The severity of the condition can change throughout a person's lifetime.

Mild ADHD

Mild ADHD is characterised by a few symptoms beyond the required number for diagnosis, which result in minor impairment in social, school, or work settings. People with mild ADHD may only experience minor difficulties in these areas of their life. For example, a person with mild ADHD may have trouble following instructions, be easily distracted, or have difficulty with organisation.

Moderate ADHD

Moderate ADHD is defined by symptoms or functional impairment that sit between mild and severe.

Severe ADHD

Severe ADHD is indicated by the presence of many additional symptoms beyond those necessary for an ADHD diagnosis. Several symptoms are severe or cause significant problems in social, school, or work settings. People with severe ADHD may experience explosive tempers, relationship or work difficulties, impulse buying, motor vehicle accidents, alcohol or substance abuse, depression, conduct or personality disorder, or an arrest history.

The severity of ADHD is determined by a clinician, but it is important to note that this determination does not always reflect a person's experience. The context of a person's situation can change the way that their ADHD presents itself.

When assessing the severity of ADHD, a medical provider will typically conduct a full medical examination, including vision, speech, and hearing assessments, to gain an understanding of the patient's overall physical health. For children, the exam can also include an assessment of the child's developmental markers appropriate for their age, as well as a possible assessment from an educational psychologist to determine any learning disabilities that could be impacting or influencing ADHD characteristics.

In addition, a diagnostic interview is conducted between the mental health professional and the patient. This usually takes the form of a structured conversation, where the psychologist or other qualified professional asks the patient specific questions that offer insight into their characteristics. The patient is asked about the duration of their symptoms, where they experience these symptoms, and how their behaviours are impacting their life at work, school, and at home.

For children, the assessor may also wish to speak with parents or other caregivers, as well as teachers, to gain an understanding of the level at which these symptoms are presenting at school and at home. For adults, the mental health provider may speak with the patient's parents, spouse or partner, and any other close support people to gain a fuller picture of how the patient is experiencing symptoms of ADHD and how this is impacting their daily functioning and relationships.

Medication

When applying for life insurance, individuals with ADHD may be required to disclose their current medications and dosages. This information is crucial for insurance companies to evaluate the risk associated with the applicant's condition. It is important to note that insurance companies view ADHD and ADD as the same condition and consider them neurological or neurodevelopmental disorders.

The impact of medication on life insurance rates for people with ADHD can vary. In some cases, taking medication to manage ADHD may be considered a positive factor, indicating that the individual is proactively managing their condition. This could potentially lead to lower rates or qualification for a Preferred rate. However, certain medications may also be associated with health risks, which could impact insurance rates. For example, stimulants like Adderall may pose health risks that could influence insurance companies' assessments.

Additionally, insurance companies may also consider the presence of other related disorders and the overall physical condition of the applicant, including height, weight, age, and medical history. It is worth noting that individuals with ADHD should be honest and forthcoming about their medication and treatment history when applying for life insurance. Working closely with a licensed insurance agent who has experience with ADHD cases can help navigate the application process and find the most suitable coverage.

Criminal history

When applying for life insurance, individuals with ADHD may be asked about their criminal history. While a criminal record alone may not be a disqualifying factor, it can impact the approval process and the premium rates offered.

Life insurance companies assess and manage risk when issuing policies. They consider various factors, including age, gender, health, pre-existing medical conditions, and risk factors, such as a diagnosis of ADHD. A criminal history can be viewed as an additional risk factor, which may influence the insurer's decision and the premium amount.

Insurers may inquire about any convictions, including felonies or misdemeanours. They may also ask about driving records, including issues such as multiple moving violations, DUI (driving under the influence), or a suspended license. These factors can contribute to a person's overall risk profile and impact their life insurance application.

It is important to note that each insurance company has its own underwriting criteria and evaluation process. Some companies may be more lenient than others in assessing criminal history. Working with an independent insurance agent or broker who has experience with high-risk individuals can be beneficial in finding the most suitable coverage.

While a criminal history can be a factor in the life insurance application process, it does not necessarily mean an automatic denial of coverage. The presence or absence of other risk factors, such as substance abuse, dangerous hobbies, or medical conditions, will also be considered. Insurers will evaluate the comprehensive risk profile of the applicant before making a decision.

In summary, when applying for life insurance with ADHD, individuals may be asked about their criminal history. This information contributes to the insurer's risk assessment and can impact the approval and premium rates offered. Working with an experienced agent and managing overall risk factors can help individuals with ADHD obtain the most favourable coverage possible.

Lifestyle choices

• Smoking and Tobacco Use: Smoking and tobacco use are among the most significant factors influencing life insurance premiums. Insurers view smokers as high-risk clients due to the associated health risks, including lung cancer, heart disease, and respiratory conditions. Life insurance premiums for smokers can be double or even triple those of non-smokers.
• Alcohol Consumption: Excessive drinking is linked to liver disease, heart problems, and an increased risk of accidents, making it a concern for insurers. Frequent or heavy drinkers may face higher premiums due to the associated health risks.
• Diet and Nutrition: A healthy diet contributes to overall health and may lower the risk of chronic illnesses such as obesity, diabetes, and heart disease. Insurers may evaluate health indicators such as body mass index (BMI), cholesterol levels, and blood pressure. An unhealthy diet that leads to conditions like obesity or high blood pressure can result in higher premiums.
• Physical Activity and Exercise: Regular physical activity is linked to a lower risk of heart disease, diabetes, and certain cancers. Applicants who maintain an active lifestyle are generally seen as lower risk. Leading an active lifestyle and incorporating regular exercise can help reduce life insurance costs.
• Occupation and Hobbies: High-risk occupations and activities increase the likelihood of accidents or injuries, leading to higher premiums. High-risk jobs include construction work, mining, and firefighting. High-risk hobbies include skydiving, scuba diving, rock climbing, and race car driving.
• Stress Levels and Mental Health: Chronic stress and untreated mental health issues can affect life insurance premiums. Insurers may consider an applicant's mental health history, and those with severe or untreated conditions may face higher premiums. However, proactively managing mental health through regular treatment or therapy can work in your favor.
• Driving Record: A poor driving record, including traffic violations, DUI/DWI convictions, or accidents, indicates higher risk and can lead to increased premiums. Conversely, drivers with clean records may qualify for lower rates as they are seen as more responsible and lower risk.
• Substance Use and Illegal Drug Use: A history of substance abuse or illegal drug use can significantly impact life insurance premiums or even lead to denial of coverage. Providing evidence of a stable recovery period and a commitment to healthy habits can improve the chances of obtaining coverage, but premiums may still be higher.

Age

The age of diagnosis is important because ADHD is typically identified in childhood, and most people "grow out of it" to some extent as they mature. Hence, the age at which an individual is diagnosed with ADHD can impact their insurance rates later in life. For instance, if an individual is diagnosed as an adult, their symptoms may be viewed as more persistent and less likely to improve over time. This could potentially lead to higher premiums or, in some cases, a denial of coverage.

The current age of the applicant also plays a role in determining life insurance rates. Older individuals with ADHD may be perceived as having a lower risk of complications or severe symptoms, especially if their condition is well-managed. As a result, they may be offered more favourable rates compared to younger applicants. Additionally, the life expectancy of the applicant is considered, with older individuals generally facing higher premiums due to their proximity to the average life expectancy.

Furthermore, the applicant's age can influence the type of insurance policy they choose. Term life insurance policies are purchased for a specific period, such as 10, 20, or 30 years, while whole life insurance policies offer coverage for an individual's entire lifetime. The choice between these options may depend on the applicant's age, with younger individuals often opting for term policies and older individuals considering whole life policies to ensure lifelong coverage.

In summary, age is a critical factor in determining life insurance rates for individuals with ADHD. The age of diagnosis, current age, and life expectancy all play a role in assessing risk and setting premiums. Older individuals with ADHD may benefit from more favourable rates, especially if their condition is well-managed, but they may also face higher premiums due to their proximity to average life expectancy. The choice between term and whole life insurance policies may also be influenced by the applicant's age.

Frequently asked questions