Orlando Harmon
Life insurance is a common way to protect your loved ones from financial hardship when you die. However, mental illness can make getting life insurance more difficult. If you have been denied life insurance due to mental health challenges, there are still options for finding a policy that works for your needs. While certain mental health conditions that have a higher likelihood of suicide, such as severe anxiety or depression, may result in higher premiums or even application denial, it is still possible to get life insurance if you suffer from depression.
| Characteristics | Values |
|---|---|
| Availability of life insurance for people with depression | Yes, but it will depend on your specific mental health condition, symptoms, treatment and how it affects your daily life. |
| Factors considered by insurers | Diagnosis, treatment history, medication, age, gender, physical health, lifestyle, occupation, medical history, and ability to keep a job |
| Types of life insurance | Term life insurance, permanent life insurance, and guaranteed issue life insurance |
| Impact of pre-existing mental health conditions | May result in higher premiums, lower coverage limits, or application denial |
| Recommendations for improving chances of approval | Seek treatment, maintain consistent employment, and disclose all relevant information to the insurer |
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What You'll Learn
Depression severity and life insurance
Depression severity plays a significant role in determining life insurance coverage and premiums. Mild depression, which is managed through therapy or medication, may not significantly influence your life insurance premiums. However, severe depression, especially if it has led to suicidal thoughts or hospitalizations, can raise concerns for insurers. In such cases, insurance companies assess the risk by considering how well you manage your condition, any treatments you're undergoing, and your overall health.
Life insurance companies typically request medical records, which include visits to mental health professionals. While seeing a psychiatrist isn't necessarily a red flag, insurers will evaluate why you're seeking treatment and the severity of your condition. If you are receiving treatment for mild depression or anxiety, it may have minimal impact on your policy. However, more severe cases or hospitalization history could result in higher premiums or limited coverage.
Insurers may also be interested in your ability to keep a job, with exceptions for those who are retired or have a physical disability. Typically, they want to see if your illness could potentially prevent you from working. They may also want to know how recently and how often you've been in the hospital. The more independent you are, the more likely you'll get coverage.
It's important to note that insurers are more likely to offer favourable terms if your condition is well-managed through regular treatment and medication. When applying for life insurance with a history of depression or anxiety, you'll need to provide detailed information about your condition, including treatments, hospitalizations, and medications. Be prepared to share information such as your mental health history, treatment plan, employment history, and medication details.
If you have trouble getting life insurance on your own, you may consider guaranteed life insurance or group insurance through your employer. Guaranteed life insurance is available to most people within a certain age bracket, regardless of their health issues, although it can be more expensive. Group insurance is where an insurer provides coverage to a company's employees under one plan, and it is often more affordable.
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Pre-existing mental health conditions and life insurance
Pre-existing mental health conditions can make it harder to get life insurance. However, it is not impossible, and there are specialist insurers that offer policies for people with pre-existing mental health conditions. In the US, the Affordable Care Act (ACA) of 2010 removed pre-existing condition requirements that health insurance providers used to impose, and now, insurance carriers must provide coverage to policyholders as long as the plan is purchased during an open or special enrollment period on the ACA exchanges.
In the UK, several insurance providers offer specialist cover for people with pre-existing mental health conditions. These include Freedom Insurance, which provides life insurance to people with pre-existing conditions, including mental health conditions; Free Spirit, which provides travel insurance for people with medical conditions, including mental health, and with no age limits; and MIA, which offers travel insurance for people with pre-existing medical conditions with no exclusions for psychiatric conditions such as anxiety, depression, or bipolar disorder.
Other specialist insurers in the UK include Moneysworth, a broker that sources insurance cover from the entire life insurance market; Cura, which has a special arrangement with Royal London for life insurance cases with challenging mental health disclosures; and The Insurance Surgery, which helps people with pre-existing medical conditions find competitive life insurance and travel insurance.
In the US, it is estimated that 50 to 129 million non-elderly Americans have some type of pre-existing health condition, and up to one in five non-elderly Americans with a pre-existing condition are uninsured. Since some mental illnesses may shorten life expectancy, this may be a factor that an insurer will consider when determining coverage. They will also consider factors such as age, physical health, lifestyle, and occupation. The more independent you are, the more likely you are to get coverage, and insurers will also be interested in your ability to keep a job, with exceptions for those who are retired or have a physical disability.
Certain mental health conditions that have a higher likelihood of suicide, such as severe anxiety or depression, schizophrenia, and substance abuse, may result in higher premiums, lower coverage limits, or even application denial. However, temporary conditions following a major life event, such as postpartum depression, are unlikely to affect your application. If you are seeing a mental health professional and following a treatment plan, this can increase your chances of being approved for life insurance at a better rate, especially if you have not been hospitalized recently and have a consistent employment history.
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Treatment history and medication for depression
Life insurance companies will want to see a complete picture of your diagnosis, treatment history, and the rest of your medical history to accurately set your premiums. They will also be interested in your ability to keep a job and your independence.
In the case of depression, psychotherapy and medications that target molecules called neurotransmitters are generally the preferred treatments. The first pharmacological treatment for Major Depressive Disorder (MDD) was discovered just over 50 years ago, with the pioneering use of Imipramine by Swiss psychiatrist Roland Kuhn in 1956. This was the first modern antidepressant, followed by other tricyclic antidepressants (TCAs) which provided relief for many but were accompanied by serious side effects. These included weight gain, tiredness, and the potential for overdose.
Newer antidepressants known as selective serotonin reuptake inhibitors (SSRIs) emerged in the late 1980s and early 1990s, including Prozac (fluoxetine), Zoloft (sertraline), and Paxil (paroxetine). These drugs target serotonin levels in the brain and usually have fewer side effects than their predecessors. More recent atypical antidepressants include Wellbutrin (bupropion), Trintellix (vortioxetine), and serotonin-norepinephrine reuptake inhibitors (SNRIs).
Electroconvulsive therapy (ECT) has also been used to treat depression, especially in cases where immediate relief is required or when other treatments have failed to provide results. However, its use has declined due to negative media representation. Other newer therapies include transcranial magnetic stimulation and vagus nerve stimulation.
When applying for life insurance, it's important to be honest about your mental health diagnosis and treatment history. Seeing a mental health professional and following a consistent treatment plan can increase your chances of approval and better rates, especially if you have steady employment and fewer medications.
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How depression affects your daily life
Life insurance is a common way to protect your loved ones from financial hardship in your absence. However, mental illness can make obtaining life insurance more difficult. Certain mental health conditions, such as severe anxiety or depression, schizophrenia, and substance abuse, may result in higher premiums, lower coverage limits, or even application denial. This is because these conditions are associated with a higher risk of suicide and may shorten life expectancy.
Depression, or depressive disorder, is a common mental health condition that can affect anyone, regardless of age, race, income, culture, or education. It is characterized by a low mood or loss of pleasure or interest in activities for extended periods, typically lasting most of the day, nearly every day, for at least two weeks. People with depression may experience a range of symptoms, including disturbed sleep, changes in appetite, low self-worth, thoughts about dying, hopelessness, tiredness, and poor concentration.
Depression can significantly impact one's daily life and ability to function. It can cause difficulties in various aspects of life, including performance at school, productivity at work, and relationships with family and friends. The World Health Organization (WHO) estimates that 12 billion productive work days are lost annually due to depression and anxiety, resulting in a substantial economic impact.
People with depression may find it challenging to complete daily tasks and maintain a consistent routine. Self-care activities such as personal hygiene, eating regularly, and managing one's health may become burdensome. Additionally, depression can affect one's motivation and energy levels, making it difficult to initiate and complete tasks, attend work or school regularly, or engage in social activities.
The impact of depression on daily life may also depend on the severity and duration of the condition. Mild depression may come and go over a person's lifetime, while severe depression tends to be a more persistent and intense illness that may require more intensive treatment. Individuals with severe depression may experience more significant impairments in their daily functioning and may have difficulty managing their symptoms without professional help.
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Types of life insurance for people with depression
Life insurance is a crucial way to protect your loved ones from financial hardship in your absence. However, mental illness can make this more difficult, and certain types of mental health conditions may result in higher premiums or even application denial. For instance, conditions with a higher likelihood of suicide, such as severe anxiety or depression, schizophrenia, and substance abuse, may result in higher premiums or lower coverage limits.
If you have been denied life insurance due to mental health challenges, there are still options available. Here are some types of life insurance that may be suitable for individuals with depression:
Term Life Insurance
Term life insurance offers coverage for a set period, typically between 10 and 30 years. It is generally more affordable, especially if you are younger and in good health. Having depression or anxiety should not deter you from considering term life insurance. While it may result in higher premiums, depending on the severity and stability of your condition, you can still find insurers who will work with you.
Permanent Life Insurance
Permanent life insurance lasts your entire life as long as you pay the premiums. It is usually more expensive than term life insurance and offers a cash value component. Whole life insurance and universal life insurance are types of permanent life insurance. While permanent life insurance may not be the best option for everyone due to its cost, it can still be an option for those with mental health conditions.
Guaranteed Issue Life Insurance
If you have been turned down for coverage due to your mental health condition, guaranteed issue life insurance may be a suitable option. This type of insurance does not require health questionnaires or medical exams, making it accessible to those who may not qualify for traditional coverage. However, it tends to be more expensive than other types of insurance.
Group Insurance
If you have trouble obtaining individual life insurance, you may consider group insurance through your employer. Group insurance covers a company's employees under one plan and is often more affordable. The insurer is willing to accept high-risk individuals because most of the group is considered low risk.
When applying for life insurance with depression, it is essential to be honest about your mental health history and treatment plan. Seeing a mental health professional and following a consistent treatment plan can increase your chances of approval and better rates. Additionally, factors such as your age, gender, physical health, lifestyle, and occupation also play a role in determining your premiums.
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Frequently asked questions
Yes, you can still buy life insurance if you suffer from depression. However, it's up to individual life insurance providers to decide whether to provide you with cover or not. Insurers will base their decision on your medical history as well as a range of other factors, such as your age, physical health, gender, lifestyle, and occupation.
Life insurance companies will want to see a complete picture of your diagnosis, treatment history, and the rest of your medical history to accurately set your premiums. They will also be interested in your ability to keep a job and how your illness affects your day-to-day life. If you are on medication, they will want to know the number, types, and strengths of the medicines.
Seeing a mental health professional may help increase your chances of being approved for life insurance at a better rate, especially if you are following a consistent treatment plan, have not been hospitalized recently, and have a stable employment history. You should also be honest and disclose your mental health condition to the insurance company. If you are struggling to find coverage, you may want to consider guaranteed issue life insurance, which does not require a medical exam or health questionnaire.
