Bipolar Disorder: Impact On Term Life Insurance Rates

Bipolar disorder is a mental health condition that can affect a person's life insurance rates. While it is possible for individuals with bipolar disorder to obtain life insurance, they may face higher premiums or be denied coverage depending on the severity of their condition and other factors. Life insurance companies consider an individual's mental health history, treatment methods, and stability when determining rates and eligibility. Factors such as medication compliance, hospitalisations, and suicide attempts can influence the underwriting process and impact the cost of life insurance for people with bipolar disorder.

Bipolar disorder and life insurance underwriting

Bipolar disorder, previously known as manic depression, is a mental illness that causes severe shifts in energy levels and mood, resulting in manic and depressive episodes. It affects a person's thinking, feeling, behaviour, and mood. The good news is that bipolar disorder is a treatable condition, and people can manage their symptoms over the long term through a combination of psychiatric medication, therapy, and a support network.

Life insurance for people with bipolar disorder

Life insurance companies consider mental health in their underwriting process, and having bipolar disorder may lead to increased premiums or even denial of coverage. The rating factor depends on the frequency, severity, treatment, and diagnosis details of the condition. That said, advancements in drug treatments and a better understanding of bipolar disorder have made it easier for those with the condition to find life insurance coverage.

• Underwriting outcome: The underwriters will assess your mental health history and categorise your diagnosis as mild, moderate, or severe. This evaluation will determine the outcome of your application, which could include premium increases, postponement of the application, or potential decline.
• Application process: Life insurance applications are detailed and personal. In addition to general information, you will need to provide answers about your lifestyle, health, and medical history. Be prepared to disclose information about your bipolar diagnosis, treatment history, hospitalizations, medication, and how you manage your condition.
• Factors considered: Underwriters will look at various factors, including the history of your bipolar diagnosis, whether it has led to any hospitalizations or time off work, the length and success of your treatment, and the number and type of medications you are taking.
• Suicide and life insurance: Suicide is a significant concern for individuals with bipolar disorder, and it is a factor that insurance companies consider. Most life insurance policies include a suicide provision, typically specifying that the provider will not pay the death benefit if the insured dies by suicide within the first two years of the policy.
• Honesty is crucial: It is imperative to answer all questions truthfully on your life insurance application and disclose any physical and mental health diagnoses. Misrepresenting or omitting critical information could invalidate your policy, and your beneficiaries may be denied the death benefit.

Tips for obtaining life insurance with bipolar disorder:

• Research your options: Not all insurance providers offer the same coverage for bipolar disorder. Some may decline coverage, while others specialise in high-risk policies or have more experience underwriting policies for individuals with mental health conditions.
• Understand the underwriting process: The underwriting process for bipolar disorder can be complex and lengthy. Be prepared for an in-depth evaluation of your health and medical history, and understand that the policy may be more costly than traditional life insurance.
• Consider alternative options: Group life insurance, often offered through employers, provides coverage regardless of health conditions. Guaranteed issue life insurance is another option that guarantees coverage regardless of health status, although it comes with higher premiums and lower coverage amounts.
• Work with a broker: Consider hiring an independent insurance agent or broker who can help you navigate the process, compare quotes, and find insurers more lenient towards individuals with bipolar disorder.
• Improve overall health: Improving your overall health and quitting smoking can positively impact your medical exam and increase your chances of obtaining more affordable rates.

In conclusion, while bipolar disorder may impact life insurance underwriting and rates, it is possible for individuals with this condition to obtain coverage. The key is to be proactive, do your research, and work with professionals who can guide you through the process of securing the best available coverage for your needs.

Factors that affect bipolar life insurance rates

Life insurance companies consider mental health in their underwriting process for life insurance. Bipolar disorder is a mood disorder that can cause drastic shifts in energy levels and mood, resulting in manic and depressive episodes. It is considered a high-risk medical condition by life insurance companies due to the increased risk of premature death associated with the disorder. The following factors will influence the life insurance rates offered to individuals with bipolar disorder:

• Frequency, severity, treatment, and diagnosis details of bipolar disorder: The more frequent and severe the bipolar episodes, the higher the insurance rates will be. If the disorder is well-managed through consistent treatment and medication, the rates may be lower.
• History of bipolar diagnosis and hospitalizations: Life insurance companies will want to know the history of the bipolar diagnosis, including any hospitalizations or time off work due to the disorder. A longer history of successful treatment and stability will result in lower rates.
• Number and changes in medication: The number of medications an individual is taking for bipolar disorder and any recent changes in medication will be considered. Consistent medication management can help earn a higher life insurance rating.
• Suicidal tendencies: Suicide is a significant risk factor for people with bipolar disorder, and life insurance companies will want to know if there have been any suicidal thoughts or attempts. Suicidal tendencies will likely result in higher rates or postponement of coverage for several years.
• Impact on daily life: If bipolar symptoms interfere with an individual's ability to hold down a job or maintain a normal social life, it indicates that the disorder is not well-controlled, leading to higher insurance rates.
• Comorbid physical health conditions: Bipolar disorder is often accompanied by other physical health issues such as thyroid disease, cardiovascular disease, diabetes, obesity, or substance abuse. These additional health conditions can increase the risk of premature death and, therefore, result in higher life insurance rates.
• Age: Age is another factor that is considered when determining life insurance rates for individuals with bipolar disorder. Younger individuals may be asked to postpone their application to see how their mental health stabilizes with treatment.

Applying for life insurance with bipolar disorder

If you have bipolar disorder, you can still get life insurance, but you may face some challenges and your rates may be higher. The best type of life insurance for people with bipolar disorder will depend on their specific needs and circumstances. Here are some things to keep in mind when applying for life insurance with bipolar disorder:

Be prepared to provide detailed information about your mental health history

When you apply for life insurance with bipolar disorder, the insurance company will likely ask you for additional details about your mental health history. This may include information about your diagnosis, any hospitalizations or time off work due to your mental illness, the length of your treatment, and the number and type of medications you have been prescribed. The insurance company will use this information to assess the severity of your condition and determine your risk level.

Expect higher premiums or a postponed application

Based on their assessment of your mental health history and current situation, the insurance company may offer you a policy with higher premiums than someone without a mental health condition. In some cases, they may postpone your application for one to two years to see how your treatment progresses. If your bipolar disorder is accompanied by other mental health issues such as depression or anxiety, there may be additional rating considerations and higher premiums.

Research your options and understand the underwriting process

Not all insurance providers will offer coverage to people with bipolar disorder, so it's important to research different companies and understand their underwriting process. Some carriers specialize in providing coverage for individuals with pre-existing health conditions, including mental health disorders. Group life insurance, offered through an employer or other organization, is another option to consider as it typically does not require a medical exam or intensive application process.

Work with a licensed agent or broker

A licensed life insurance agent or broker can help you navigate the process of applying for life insurance with bipolar disorder. They can assist you in comparing rates and finding the best policy for your needs. Working with an agent or broker who has experience with mental health issues can be especially helpful.

Be honest and provide complete information

When applying for life insurance, it is crucial to be honest and provide complete and accurate information about your health, including your mental health diagnosis. Failing to disclose your bipolar disorder or providing misleading information could result in your policy being invalidated or your beneficiaries being denied the death benefit.

Bipolar life insurance options

Bipolar disorder is a mental health condition characterised by mood swings ranging from depressive lows to manic highs. It is also known as manic depressive disorder.

Life insurance options for people with bipolar disorder:

• Fully underwritten life insurance for people with mild bipolar disorder
• Simplified issue life insurance for people with bipolar disorder
• Burial life insurance options for people with moderate to severe bipolar disorder
• Guaranteed issue whole life insurance for people with severe bipolar disorder
• Bonus (almost) guaranteed issue life insurance for people with bipolar disorder

Fully underwritten life insurance for people with mild bipolar disorder

If you have a mild, stable bipolar disorder, then any type of life insurance is likely available to you. Underwriters won't generally limit the death benefit available to you. Term life insurance or permanent life insurance, like whole life or universal life, is available.

The main thing carriers are going to look at is the stability of your bipolar disorder. You will have to go through a fully underwritten application process.

Gainful full-time employment matters, too. Working is a normal, daily life activity. If you demonstrate the ability to work full-time, coupled with the stability of your condition, you will likely get either term life insurance or permanent insurance.

Simplified issue life insurance for people with bipolar disorder

A simplified issue plan may be a good option if you don’t need much life insurance. If you need, say, $50,000 for funeral, burial, and end-of-life expenses, these plans are a great fit.

Burial life insurance options for people with moderate to severe bipolar disorder

If you have a moderate to severe case, then a simplified issue life insurance option called burial insurance is available.

Burial insurance is an easy application and underwriting process. The carrier doesn't ask about bipolar disorder, accepts your medication, and there is nothing else in your background that adversely impacts your application.

Guaranteed issue whole life insurance for people with severe bipolar disorder

If you have a severe case of bipolar disorder, you may think life insurance is impossible for you. Well, it's not. It's called guaranteed issue whole life insurance. Unlike fully underwritten and simplified underwriting life insurance, with guaranteed issue life insurance, there is no underwriting. Approval is guaranteed.

Since no underwriting exists, carriers don’t know the applicants’ health status. So, companies put a “waiting period” on the death benefit. Usually, that waiting period is 2 years. That means if you were to pass away by illness or natural causes within the first 2 years of the policy’s start date, your beneficiaries would receive the premiums you paid + any interest.

Bonus (almost) guaranteed issue life insurance for people with bipolar disorder

Finally, there is an “almost” guaranteed issue life insurance plan. How is this different from a traditional guaranteed issue plan? Well, the application has only two questions, one of which is a health question.

The first question asks if you are working in gainful employment. You see, working matters. In this case, the life insurance company defines someone working 20 or more hours per week. Moreover, this is gainful employment for an income. It is not volunteer work or anything like that.

The health question is as follows: In the past 12 months, has any applicant needed assistance for 2 or more Activities of Daily Living, received chemotherapy, radiation therapy or dialysis, or been diagnosed, treated, or prescribed medication by a medical professional for AIDS, AIDS-related complex, an immune system disorder or terminal illness? If you work in gainful employment and can answer “no” to the health question, then you qualify for (almost) guaranteed issue life insurance up to $50,000. It is a term life insurance plan to age 121.

What to expect when applying for life insurance with bipolar disorder

The application process for life insurance can be lengthy and personal. You will have to answer a series of questions about your lifestyle and health. In the former category, you may be asked common questions like:

• Drug and alcohol use
• Hospitalizations
• Suicide attempts

In the medical questionnaire, you will need to provide up-to-date information about your personal health history, including all physical and mental health diagnoses, what medications you currently take, and any procedures you’ve undergone. Many life insurance companies will also ask about your family’s health history to understand any possible predispositions to certain conditions.

Additionally, life insurance companies will require an Attending Physician’s Statement (APS) that is filled out by a health professional, like your doctor, to confirm your diagnosis information.

Insurability for bipolar disorder will cover several areas. For instance, underwriters will factor in other health conditions that the applicant might have. They’ll take a long look at the cognitive function of the proposed insured. Another important point will be what kind of medication the person with bipolar disorder is taking, if any.

Perhaps one of the main factors that an insurer will think about is that there is a higher rate of suicide among those with bipolar disorder.

How to get the best bipolar life insurance rates

If you have bipolar disorder, you may be concerned about the impact it could have on your life insurance rates. While it's true that bipolar disorder can affect your rates and the options available to you, it's important to know that you still have choices and can take steps to get the best rates possible. Here are some tips to help you get the best bipolar life insurance rates:

Understand the Underwriting Process

The underwriting process is crucial in determining your life insurance rates. It involves assessing your health, including any pre-existing conditions, and your overall risk. Be prepared to answer questions about your bipolar disorder, such as the date of diagnosis, the severity, any medications you're taking, and your treatment plan. The more stable your condition is, and the better your overall health, the lower your risk will be, which can lead to better rates.

Shop Around and Compare Rates

Don't settle for the first life insurance company you come across. Rates and policies can vary significantly between providers, so it's essential to shop around and compare rates from multiple companies. This is especially important if you have bipolar disorder, as some companies may be more lenient than others. By comparing rates, you can find the most affordable option for your needs.

Consider Different Types of Life Insurance

There are several types of life insurance available, and some may be more suitable for individuals with bipolar disorder. Term life insurance, for example, offers coverage for a specific period and is generally cheaper than whole life insurance. Guaranteed issue life insurance is another option that doesn't require a medical exam or health questionnaire, although it may have higher premiums and lower coverage amounts. Group life insurance, offered through employers or other organizations, is also an option worth considering as it typically doesn't take health conditions into account.

Work with a Licensed Insurance Broker or Agent

Engaging the services of a licensed insurance broker or agent can be incredibly beneficial. They can guide you through the process, answer any questions you may have, and help you navigate the complexities of finding life insurance with bipolar disorder. They often have access to a wide range of insurance companies and can assist you in finding the best rates and policies suited to your situation.

Maintain Stable Mental Health and Overall Wellness

Insurance companies consider the stability of your mental health and your overall wellness when determining your rates. If you can demonstrate that your bipolar disorder is well-managed, and you are compliant with your treatment plan, this can work in your favor. Avoid any drug or substance abuse, follow your doctor's instructions, and maintain a stable personal life. This will show insurers that you are lower risk, which can lead to better rates.

While bipolar disorder may present challenges when it comes to life insurance, it doesn't mean you can't find affordable coverage. By following these tips and staying informed, you can increase your chances of getting the best bipolar life insurance rates available to you.

Frequently asked questions