The Impact Of Mental Health: Understanding How Depression May Affect Your Insurance Options

Mental health problems can sometimes make it difficult to get the right insurance policy. Many insurance providers do not cover pre-existing medical conditions, including mental health problems, and they may also have restrictions on what they will and will not cover in terms of mental health. People with depression may be assessed as ''high-risk'' customers and refused cover or charged a higher premium. However, this is not always the case, and there are steps that can be taken to make finding the right insurance policy easier. For example, it is recommended that you shop around different insurers, check exactly what different policies cover, and prepare before you apply.

You can get insurance if you have depression

Depression is a common mood disorder that affects how you feel, think, and act. It is experienced by many people, and it should not stop you from considering term life insurance. While the diagnosis doesn't mean an automatic decline, it can affect life insurance costs.

How to Get Insurance if You Have Depression

If you have depression, you can still get life insurance, but you may have to pay higher premiums. Here are some tips for navigating the application process:

• Get your insurance policy as soon as possible. The sooner you apply, the sooner you could be covered, and your monthly rate will likely be lower because you're younger and inherently healthier.
• Disclose your full medical history. If you don't, it could impact whether your claim is paid if you pass away.
• Don't worry too much about your rates. In many cases, depression without additional complications or symptoms might not impact your underwriting class.
• Take care of yourself. Make sure you are getting the care you need and are compliant with your doctor's recommendations and treatment for any health conditions.
• Prepare for your life insurance medical exam. If you have to take a medical exam, it's usually a good idea to fast overnight and lay off the caffeine that morning.
• Don't assume you can't be covered. Depression should not prevent you from applying for life insurance. Be honest, keep expectations in check, and don't be afraid to ask questions.

Additional Considerations

• Work with an independent life insurance broker. They will help match you to the insurer that will be most lenient with your diagnosis.
• Shop around for different insurers and compare prices and options.
• Check exactly what different policies cover. Read the small print and make sure you understand what is covered.
• Prepare before you apply. Have a doctor's report ready that explains your condition in detail.
• Tell the insurer what you need. You can ask to communicate by email or request to talk to a different member of staff if you feel someone doesn't understand your situation.

Sources of Support

If you are experiencing depression, you are not alone. There are many sources of support available to you, including:

• SAMHSA's National Helpline: a free, confidential, 24/7, 365-day-a-year treatment referral and information service for individuals and families facing mental and/or substance use disorders.
• Mind: a UK-based mental health charity that provides information, support, and local services.

You may have to pay higher premiums

If you have depression, you may be assessed as a "high-risk" customer by insurance providers, which could result in higher premiums. This is because insurers view your chances of making a claim as higher than those without depression. This can be the case even if you have recovered from depression in the past.

The presence of other factors in addition to depression may further increase your premiums. For instance, if depression has impacted your work or school life, or if you have had frequent medication changes, you may be charged a higher premium. Being on multiple medications, having a history of suicide attempts, or having other health conditions related to mental illness, such as drug or alcohol misuse, can also lead to higher premiums.

However, it is important to note that not disclosing your mental health history can have more severe consequences than paying higher premiums. If you do not disclose your mental health history, your insurance claim may be rejected, or your beneficiaries may not receive benefits in the event of your death.

Additionally, the impact of depression on your insurance rates may depend on the severity of your condition and the treatment methods you are using. If your depression is mild and well-controlled, you may still qualify for preferred rates. Seeking treatment and keeping your condition under control can improve your chances of obtaining coverage at more affordable rates.

You can be denied insurance due to depression

Depression is a common mood disorder that affects how you feel, think, and act. While it is possible to get life insurance if you have depression, there are some cases where you may be denied coverage.

Reasons for Denial

If you have a history of depression, insurance companies will evaluate your application on a case-by-case basis. Some reasons you may be denied coverage include:

• A history of suicidal thoughts or attempts.
• Non-compliance with prescribed medication or refusal of treatment.
• Being on multiple medications.
• Hospitalization due to mental illness.
• Other health conditions related to mental illness, such as substance misuse or a history of drug or alcohol abuse.

Alternative Options

If you are denied traditional life insurance, there are alternative options available:

• Group life insurance through your employer, which accepts all applicants regardless of pre-existing conditions.
• Guaranteed issue life insurance, which has age restrictions but does not require medical information. However, these policies have limited coverage amounts and higher premiums.
• Simplified issue life insurance, which only requires answers to a few medical questions. Similar to guaranteed issue policies, simplified issue insurance has higher premiums and limited coverage.
• Accidental death insurance, which pays benefits to beneficiaries if the insured's death is due to an accident. This type of policy is easy to apply for and does not require a medical exam.

Tips for Navigating the Application Process

• Work with an independent life insurance broker who can help match you with insurers that are more lenient regarding mental health diagnoses.
• Be honest when disclosing your medical history. Failure to disclose your full history can delay your coverage decision or result in your claim being denied.
• Get your insurance policy as soon as possible. The sooner you apply, the sooner you can be covered, and your monthly rate may be lower due to your age and health.
• Don't worry too much about your rates. Mild to moderate depression without additional complications may not impact your underwriting class.
• Take care of your overall health and follow your doctor's recommendations for treating your condition.

The application process can be difficult

The process of applying for insurance can be challenging, especially if you have a mental health condition such as depression. Here are some ways in which the application process can be difficult:

Intrusive and Upsetting Questions

The application process may involve intrusive and upsetting questions about your mental health. Staff asking these questions may not have mental health training, which can make the experience more uncomfortable. You may be asked about your diagnosis, severity, history of suicidal thoughts or attempts, substance abuse, medications, and hospitalisations. It is important to be honest when answering these questions, as insurance companies will verify the information with your medical records.

Difficulty Concentrating on Forms

If your mental health condition affects your concentration, filling out the required forms and providing detailed information can be challenging. The application process may involve lengthy forms with small print, which can be difficult to navigate, especially if you are dealing with depression or other mental health issues.

Higher Premiums or Refusal of Coverage

Insurance companies may view individuals with mental health conditions as "high-risk" customers, leading to higher premiums or even refusal of coverage. This can be frustrating, especially if your mental health condition is well-controlled or you are recovering. The criteria for assessing risk can vary between insurance companies, so it is important to shop around and work with a broker who can advocate for you.

Lack of Transparency in Decision-Making

In some cases, insurance companies may not clearly explain their decision-making processes. If you are refused coverage or charged a high premium, the insurer may not provide a satisfactory explanation. This lack of transparency can be frustrating and make the application process more difficult.

Delay in Coverage Decision

Failing to disclose your full mental health history can delay the coverage decision. If an undisclosed diagnosis is discovered during the underwriting process, it may lead to additional time spent ordering and reviewing medical records. Therefore, it is essential to be honest and upfront about your mental health history during the application process.

Navigating the application process for insurance with a mental health condition like depression can be challenging. However, it is important to remember that you have rights, and there are resources available to help you through this process.

You may be asked upsetting or intrusive questions

When applying for insurance, you may be asked upsetting or intrusive questions about your mental health by staff who do not have mental health training. These questions can be difficult or personal, and the application process may feel upsetting or intrusive. For example, the insurer may ask you only one broad question about your mental health, such as 'have you ever had a mental health problem?'. If you answer yes, they may then refuse to cover you or charge you a higher premium.

You can prepare for upsetting or intrusive questions by having a doctor's report ready before you apply. You could ask your GP or psychiatrist to provide a report that explains your condition in detail. This might help your case when you apply for insurance or if you need to challenge an insurer's decision. Reports can sometimes take a while to come through, so try to have this ready beforehand. You can also consider asking someone to support you through the process, such as a friend, family member, carer or advocate.

Frequently asked questions