Life Insurance And Bipolar Disorder: What's Covered?

Life insurance for people with bipolar disorder can be challenging to obtain, but it is not impossible. Bipolar disorder is considered a pre-existing condition by life insurance companies, and the severity of the condition will impact the success of an application and the cost of premiums.

The key factors that determine the availability and cost of life insurance for people with bipolar disorder are:

- The severity of the bipolar disorder

- Whether the bipolar disorder is controlled or uncontrolled

- The type of bipolar disorder (Bipolar 1 or Bipolar 2)

- The applicant's medical history, including hospitalisations, medication, and treatment plans

- The applicant's ability to work and maintain personal relationships

- The life insurance company's underwriting criteria

People with mild and controlled bipolar disorder may be able to obtain life insurance at standard rates, while those with more severe or uncontrolled bipolar disorder may need to consider alternative options such as guaranteed issue life insurance policies or graded death benefit policies. It is important to shop around and compare quotes from multiple life insurance companies, as the underwriting criteria vary.

Life Insurance for Bipolar Disorder: What You Need to Know

Bipolar disorder, previously known as manic depression, is a mental health condition characterised by mood swings ranging from depressive lows to manic highs. While it was once difficult to obtain life insurance for those with bipolar disorder, advancements in treatment and a greater understanding of the condition have made it easier for those with the disorder to find life insurance coverage.

Yes, people with bipolar disorder can get life insurance. However, this wasn't always the case. Before advancements in medicine and a better understanding of bipolar disorder, people with the condition were often denied coverage. While some insurers still won't cover those with bipolar disorder, numerous leading insurers now offer whole life insurance, as well as term life insurance, for people with the condition.

You can expect to pay higher rates for life insurance if you have bipolar disorder. The rate increase will depend on the insurer, with rates varying widely between providers. It may be worth shopping around to find the best deal.

• Research your options: Some insurers will decline coverage for people with bipolar disorder, so focus on those that will provide coverage.
• Understand the underwriting process: The underwriting process will be more in-depth if you have bipolar disorder, and the policy will likely be more expensive than traditional life insurance.
• Consider employer or group coverage: Group life insurance policies offer coverage regardless of health conditions, so this could be an ideal option if it's available to you.

To increase your chances of being approved for standard rate life insurance, ensure you are:

• Compliant with your doctor's orders
• Following your treatment plan
• Not using or abusing drugs
• Not attempting suicide

Insurers will want to know:

• Whether you've ever been treated for and/or taken medication for bipolar disorder
• When you were diagnosed
• Whether the diagnosis was mild, moderate, or severe
• What kind of medication you're taking
• Whether you're currently undergoing psychotherapy treatments
• Whether you've recently attempted suicide
• Whether you've ever been hospitalised because of bipolar disorder
• Whether your personal life is stable
• How you're treating your bipolar disorder

If you're denied traditional life insurance coverage, you could consider:

• A graded death benefit policy: This type of policy increases its benefit value over time.
• Group insurance: Group insurance usually doesn't involve a strict application or medical exam, and pre-existing conditions aren't excluded from coverage.
• Guaranteed issue insurance: This type of policy will be more expensive and provide less coverage, but it's guaranteed regardless of your health condition.

Life Insurance Applications: What to Expect

If you have bipolar disorder, you may have thought that life insurance was unavailable or out of reach. That is not true. You can get approved for life insurance, and in some cases, as early as a few days. However, the process can be tricky, and you may need to shop around and try a few companies to get coverage.

The Application Process

Life insurance applications can be pretty personal, so it's good to know what kind of information you will be asked to reveal. In addition to general information about your identity, you will have to answer a series of questions about your lifestyle and health. Some common questions include:

• Drug and alcohol use
• Your mental health history, including any diagnoses, treatments, medications, and hospitalizations
• Your family's health history

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

Factors Affecting Your Application

When assessing your application, insurance companies will consider the following:

• The severity of your bipolar disorder
• Your treatment plan and compliance with it
• Your employment status and ability to work full-time
• Any hospitalizations due to your condition
• Any suicide attempts or ideation
• The type and number of medications you are taking
• Your overall health and any other medical conditions

Types of Life Insurance for People with Bipolar Disorder

There are several types of life insurance available to people with bipolar disorder:

• Term life insurance: Covers you for a specific period, usually between 10 and 30 years, and is generally cheaper than other types.
• Permanent life insurance: Lasts your entire life as long as you pay the premiums but is usually more expensive.
• Guaranteed issue life insurance: Offers guaranteed approval with no medical exam, but the death benefits are typically capped, and premiums are higher.
• Group life insurance: Offered through employers, with no medical underwriting, and is generally inexpensive and easy to obtain.
• Burial life insurance: Covers final expenses such as funeral or burial costs and has more lenient underwriting.

Costs and Premiums

Life insurance rates are usually increased for people with bipolar disorder, and you can expect to pay higher premiums. The exact rates will depend on the insurance company and the specific details of your condition and treatment.

Life Insurance Options for Bipolar Disorder

Bipolar disorder, previously known as manic depression, is a mental health condition characterised by mood swings ranging from depressive lows to manic highs. While it is possible to get approved for life insurance if you have bipolar disorder, it can be a challenge to find affordable, traditionally underwritten life insurance. However, there are several options available, depending on the severity of your bipolar disorder and whether it is under control.

Life Insurance Options

Fully Underwritten Life Insurance

If you have a mild, stable bipolar disorder, then any type of life insurance is likely available to you. You will have to go through a fully underwritten application process, but gainful full-time employment can prove to life insurance companies that you can manage your condition while maintaining employment.

Simplified Issue Life Insurance

Simplified issue life insurance is a good option if you don't need much life insurance. There is no intensive application or physical exam, so your bipolar disorder won't count against you.

Burial Life Insurance

If you have a moderate to severe case of bipolar disorder, then a simplified issue life insurance option called burial insurance is available. Burial insurance is a whole life insurance policy with a small death benefit, usually for funeral, burial, and final expenses.

Guaranteed Issue Life Insurance

If you have a severe case of bipolar disorder, guaranteed issue life insurance is an option. There is no underwriting, and approval is guaranteed. However, there is usually a “waiting period" on the death benefit, during which your beneficiaries will only receive the premiums you paid plus interest if you pass away.

Group Life Insurance

Group life insurance is offered by employers through the workplace. It is usually inexpensive and easy to obtain, and there is no intensive application or physical exam, so your bipolar disorder won't count against you.

Application Process

When applying for life insurance, you will have to answer questions about your lifestyle and health, including your drug and alcohol use, and provide up-to-date information about your personal health history, including all physical and mental health diagnoses, and any procedures you've undergone. You will also need to provide an Attending Physician's Statement (APS) that is filled out by a health professional to confirm your diagnosis information.

Factors Affecting Premiums

If you have bipolar disorder, you can expect to pay higher premiums than someone who doesn't. The amount your premiums will increase depends on the stability of your bipolar disorder. If you have a mild case of bipolar disorder that is stable and under control, you may pay only slightly higher premiums. However, if you have a more severe case, your premiums could increase by 50-200%.

Life Insurance Costs: How Much Will You Pay?

The cost of life insurance, also known as the premium, can vary significantly depending on various factors, including your age, gender, health status, lifestyle choices, and the type of policy you choose. Understanding these factors can help you estimate the potential expense of purchasing life insurance, especially if you have a pre-existing condition like bipolar disorder. Here's a detailed guide to help you navigate the considerations and provide a clearer picture of the financial commitment involved in obtaining adequate coverage.

Health Status and Pre-existing Conditions:

Your physical and mental health plays a crucial role in determining your life insurance costs. Pre-existing conditions such as bipolar disorder may impact your premiums. Insurance providers often assess the risk associated with insuring individuals with mental health disorders differently, which can lead to variations in pricing. It's important to disclose any pre-existing conditions accurately during the application process to ensure coverage remains valid.

Age and Gender:

Age is a significant factor in life insurance pricing. Premiums tend to increase with age as insurers consider the heightened risk of health issues and mortality. Younger individuals generally secure lower rates, so purchasing life insurance earlier in life can be advantageous. Additionally, gender influences premiums due to differences in life expectancy and associated risks; women often qualify for slightly lower rates than men.

Lifestyle Choices and Risk Factors:

Your lifestyle choices and habits can also impact your life insurance costs. Smoking, for instance, significantly increases premiums due to the well-known health risks associated associated with tobacco use. Similarly, dangerous hobbies or occupations may result in higher rates or the need for additional coverage. Insurers may inquire about your travel habits, particularly to high-risk regions, and factor this into your premium. Other considerations include your driving record, credit history, and participation in hazardous activities.

Type of Policy and Coverage Amount:

The type of life insurance policy you choose will significantly affect the cost. Term life insurance, which provides coverage for a specified term, is generally more affordable than whole life insurance, which offers coverage for a lifetime. The desired coverage amount also influences the premium; higher coverage amounts result in higher premiums. It's important to carefully consider your financial obligations and dependents' needs when determining the appropriate level of coverage.

Shopping Around and Comparing Quotes:

Life insurance rates can vary across different insurance providers, so it's advisable to shop around and obtain quotes from multiple companies. This allows you to compare pricing, terms, and conditions to find the most suitable policy for your needs and budget. Working with an independent insurance agent or broker who can provide quotes from a variety of insurers can be beneficial.

In conclusion, the cost of life insurance is influenced by a combination of personal factors and policy choices. While bipolar disorder may be a consideration, it should not deter you from seeking coverage. By understanding the factors that influence pricing, you can make informed decisions about the type and amount of coverage that best suits your needs. Remember to be transparent during the application process and consider seeking professional guidance to navigate the complexities of life insurance planning.

Life Insurance Denials: What to Do Next

If you've been denied life insurance due to a bipolar disorder diagnosis, there are several alternative options to consider.

Guaranteed Issue Life Insurance

Firstly, it's important to note that guaranteed issue life insurance is available to everyone, regardless of their health condition. This type of policy will have more costly premiums and less coverage than other types of insurance, but it's an alternative if you've been denied traditional life insurance.

Graded Death Benefit Policy

Graded death benefit policies are another option if you've been denied traditional life insurance. These policies increase their benefit value over time, so the longer they are in force, the greater their payout.

Group Insurance

Group insurance is often offered through an employer or other group such as a union, and it's an attractive option if you've been denied traditional coverage. There is usually no strict application or medical exam, so your bipolar disorder won't count against you.

Shop Around

Not all insurance companies will deny coverage to those with bipolar disorder. It's worth shopping around and trying a few companies to get coverage. Some companies will be willing to make an offer after the second or third follow-up visit with a doctor, so it's worth being persistent.

Improve Your Risk Factors

If you can demonstrate that you are successfully managing your bipolar disorder, you may be able to get approved for at least a standard policy. This could include holding down a full-time job, paying bills on time, and maintaining stable personal relationships. Providing a cover letter that puts your case forward in a positive light can also help sway underwriters.

Get a Re-Evaluation

If you've had your bipolar disorder under control for at least five years, you can request a re-evaluation of your rates. If treatment is working, it's not uncommon for an insurer to review your policy and issue a standard policy or even give you a rating in the preferred category.

Compare Quotes

Different insurance companies have varying underwriting criteria, so it's important to compare quotes from multiple companies to find the best rates and coverage options. Be honest when answering questions, as inaccurate responses could lead to a denial of coverage.

Frequently asked questions