Ptsd And Life Insurance: What You Need To Know

Post-traumatic stress disorder (PTSD) is a mental health condition that can affect a person's nervous system, immune system, and physical health. It can be caused by a range of traumatic experiences, including military combat, violent personal acts, and natural disasters. While it is possible for individuals with PTSD to obtain life insurance, the condition may affect the rates and availability of coverage. Life insurance companies evaluate health risks differently, and some may offer higher rates or even decline coverage for individuals with PTSD. However, there are companies that specialise in providing life insurance for those with PTSD, and working with an independent insurance agent can help individuals find the best policy for their needs.

PTSD and life insurance: Can you get covered?

Post-Traumatic Stress Disorder (PTSD) is a mental health condition that can affect a person's ability to secure life insurance. It is considered a high-risk factor by insurers due to its potential impact on an individual's mental and physical health, including an increased risk of suicide and substance abuse. However, it is important to note that a PTSD diagnosis does not automatically disqualify someone from obtaining life insurance coverage. The availability and cost of coverage depend on several factors related to the severity of the condition and the individual's overall health and lifestyle.

Factors Affecting Coverage and Cost

The severity of PTSD symptoms plays a significant role in determining life insurance coverage and rates. Individuals with mild PTSD that is well-controlled, without hospitalizations or suicide attempts, are more likely to qualify for standard or preferred rates. However, as the severity of PTSD increases, individuals may face higher premiums or even declination of coverage by some insurers.

In addition to the severity of PTSD, insurers consider other factors, including current medications, compliance with treatment, and the presence of other underlying health conditions or mood disorders. A history of hospitalization, suicide attempts, or substance abuse can negatively impact an individual's ability to obtain coverage or result in higher premiums.

Working with an Independent Agent

Due to the complexity of PTSD and its impact on life insurance, it is highly recommended to work with an independent insurance agent. These agents have expertise in understanding the nuances of PTSD and can help individuals find the most favourable coverage options. They can guide applicants through the application process, including preparing for underwriting questions and selecting the most appropriate insurer based on their specific circumstances.

Life Insurance Options for People with PTSD

People with PTSD have various life insurance options available to them. These include permanent life insurance, term life insurance, and guaranteed issue life insurance policies. The choice of policy depends on individual needs and the severity of their PTSD diagnosis. Term life insurance, for example, may be suitable for those seeking coverage for a specific period, while permanent life insurance offers lifelong protection.

Additionally, individuals with PTSD may consider guaranteed issue life insurance policies, which do not require answering health questions and provide coverage regardless of medical history. However, these policies typically have a waiting period before the full death benefit is payable.

Life Insurance for Veterans with PTSD

Veterans Affairs (VA) offers additional life insurance options specifically for veterans and active service members with PTSD. Servicemembers' Group Life Insurance (SGLI) is a low-cost term life insurance option available during active service, which can be converted to Veteran's Group Life Insurance (VGLI) after retirement or separation from the military. The VA also provides Service-Disabled Veterans' Insurance (S-DVI) for veterans with service-connected disabilities.

In conclusion, while PTSD can impact life insurance coverage and rates, it does not necessarily exclude individuals from obtaining coverage. Working with an independent agent, understanding the severity of PTSD, and exploring different policy options can help individuals with PTSD secure the most suitable and affordable life insurance coverage for their needs.

How does PTSD affect life insurance premiums?

Post-Traumatic Stress Disorder (PTSD) is a mental health condition that can affect both military personnel and civilians alike. It is estimated that around 20 million Americans have a PTSD diagnosis, with the condition affecting women more than men. People with PTSD often experience symptoms such as severe anxiety, traumatic flashbacks, and nightmares, which can take a toll on their mental and physical health.

When it comes to life insurance, a diagnosis of PTSD can impact the premiums that an individual pays. Life insurance companies view individuals with PTSD as high-risk insureds due to the potential link between PTSD and an increased risk of suicide and drug and alcohol abuse. As a result, individuals with PTSD may face higher premiums or even be declined coverage by some life insurance companies.

However, the impact of PTSD on life insurance premiums depends on several factors related to the individual's condition and overall health and lifestyle. Here are some factors that can affect life insurance premiums for people with PTSD:

• Severity of PTSD: Mild cases of PTSD that are well-controlled, without hospitalizations or suicide attempts, are more likely to qualify for standard or preferred rates. More severe cases of PTSD that require multiple medications, have a history of hospitalization, or are associated with suicide ideation may lead to higher premiums or even a decline in coverage.
• Overall Health and Lifestyle: Life insurance companies will consider an individual's overall health and lifestyle when determining premiums. Factors such as occupational instability, marital or family disharmony, alcohol or drug abuse, poor physical health, and family history of mental disorders can negatively impact premiums. On the other hand, maintaining a steady job, regular exercise, and a healthy lifestyle without substance abuse can help in obtaining better rates.
• Medical History and Treatment: Life insurance companies will review an individual's medical history, including any hospitalizations, medications, and treatment plans. They will also assess the stability and control of PTSD symptoms. Regular check-ups with a doctor and compliance with medication and treatment plans can be viewed favorably and may lead to lower premiums.
• Type of Life Insurance: Different types of life insurance policies are available, such as permanent, term, and guaranteed issue life insurance. The chosen type of policy can impact the premiums paid by individuals with PTSD.
• Independent Insurance Agents: Working with an independent insurance agent who understands PTSD and has experience working with multiple insurance companies can be beneficial. These agents can help individuals find the right company and policy that fits their needs and may have access to insurers that specialize in covering people with PTSD.

In summary, while PTSD can affect life insurance premiums and make it challenging to secure affordable coverage, it is not an automatic disqualifier. The impact on premiums depends on the severity of the condition and the individual's overall health, lifestyle, and medical history. Working with an independent insurance agent and shopping around for the right company can help individuals with PTSD obtain the best rates and coverage for their needs.

What factors do life insurance companies consider when evaluating someone with PTSD?

When evaluating someone with PTSD, life insurance companies consider a variety of factors, including:

• The severity of the PTSD, including whether it is mild, moderate, or severe.
• Current medications, including the number and type of medications being taken, and whether they include antipsychotics or mood stabilizers such as lithium.
• Any other underlying health conditions or mood disorders such as depression, anxiety, or other psychological or neurological conditions.
• History of hospitalizations, especially within the last 12-24 months, due to PTSD.
• History of suicide attempts or ideation, especially within the past 12 months.
• Ability to work and overall functionality in social and domestic settings.
• Lifestyle choices, including physical activity, alcohol or tobacco use, and drug abuse.
• Family history of mental disorders.
• Driving record.

These factors are assessed by medical underwriters to determine the level of risk associated with insuring an individual with PTSD. The more unfavorable" factors are present, the higher the risk class assigned, resulting in higher premiums to offset the insurer's risk. However, it is important to note that a PTSD diagnosis does not automatically result in a decline for life insurance, and there are companies that specialize in providing coverage for individuals with PTSD.

What are the challenges of underwriting PTSD?

Challenges of underwriting PTSD

Underwriting PTSD is challenging for life insurance companies as it is a mental health disorder that has been shown to lead to depression and a higher risk of suicide. Insurers need to evaluate the risk of insuring someone with PTSD, which can be difficult as the condition can range from mild to severe and can be short-lived or last for years.

Factors that affect underwriting

• The severity of the PTSD
• The applicant's current medications
• Other underlying health conditions or mood disorders
• History of hospitalizations or suicide attempts
• The applicant's work history and ability to function in social and domestic settings
• The applicant's physical health and lifestyle habits, such as alcohol or tobacco use

Challenges for applicants

The underwriting process can be challenging for applicants with PTSD as they may need to disclose personal information about their mental health and answer questions about their symptoms, treatment, and functioning. The process may also be lengthy, requiring a medical exam and the release of medical records.

Alternative options

For applicants with severe PTSD who are unable to obtain traditional life insurance coverage, there are alternative options such as guaranteed issue life insurance or accidental death coverage. These policies may have waiting periods or limited benefits, but they can provide some level of protection for individuals with PTSD who are unable to obtain traditional coverage.

What are the alternatives if you are denied life insurance due to PTSD?

If you are denied life insurance due to PTSD, there are several alternatives you can consider:

• Shop around for different insurers: Every insurance company has its own policies and algorithms for determining who they will sell policies to. Therefore, even if one or two companies deny your application, others may be more accommodating. It is beneficial to work with an experienced and independent life insurance broker or agent who can shop around on your behalf and guide you towards insurers that are more likely to insure people with PTSD.
• Apply for a guaranteed issue life insurance policy: This type of policy often has a quick and easy application process and does not require a medical exam or questionnaire. However, the available death benefits are typically capped at a lower amount, and the premiums tend to be higher compared to other life insurance policies.
• Consider group life insurance: Group life insurance is usually offered by employers through the workplace, and it is often inexpensive and easy to obtain. It generally does not require any medical underwriting to qualify, but the policy only remains active as long as you are employed by the company.
• Explore Veterans Affairs (VA) life insurance options: If you are a veteran or active service member with PTSD, the VA provides additional life insurance options. Servicemembers' Group Life Insurance (SGLI) is a low-cost term life insurance policy that does not require an application or medical underwriting. You can also convert your SGLI policy to a Veteran's Group Life Insurance (VGLI) policy after retiring from the military.
• Be truthful and forthcoming on your application: Lying on a life insurance application can be considered fraud and can lead to serious consequences, such as automatic denial of coverage or higher rates. It is important to be honest about your PTSD diagnosis and any treatments you are undergoing.
• Work on managing your PTSD: The severity of your PTSD will impact your life insurance options and premiums. If you can demonstrate that your PTSD is mild and well-controlled, without any recent hospitalizations or suicide attempts, you may qualify for more favourable rates. Seeking consistent treatment and following your doctor's recommendations can improve your chances of obtaining life insurance.

Frequently asked questions