Can You Be Denied Coverage For Depression Thats Pre
The Affordable Care Act made it illegal for insurance companies to refuse you coverage for a pre-existing condition like depression, along with many other kinds of pre-existing conditions . This law applies to health plans that continue to follow ACA guidelines. ACA plans cannot charge you more or raise your rates just because you have been diagnosed, have received, or are currently receiving treatment for depression.
As the political landscape shifts, there could be new health plans made available that do not follow ACA standards. They may not offer coverage for pre-existing conditions such as depression. Make sure you understand all the details of any health plan before enrolling, especially how pre-existing conditions are covered.
Weve Secured Cover For 45% Of Applicants Declined Elsewhere
Regardless of what mental illness you suffer from, at Reassured we have an who specialise in arranging life insurance for those who may otherwise struggle.
Our specialists can put you in touch with the insurers most likely to accept your application.
We can also help you through the entire application process, ensuring you feel comfortable about your cover every step of the way.
Can I Get Life Insurance If I Take Medication For Depression
Yes, as our table above shows, you can get life insurance if you take medication for depression. The underwriting process can vary depending on which insurer you apply through and so we would always recommend that you speak to an independent specialist. Our section ‘Which is the best life insurance company if I have depression, anxiety or mental illness?’ explains more
If you have indicated that you have suffered from depression, all insurers will ask whether you have had suicidal thoughts. Our research shows that Legal and General are more lenient with their underwriting stance in this area.
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How To Apply For Life Insurance With Depression
When applying for life insurance with depression, one of the most important things you can do is work with an independent life insurance agent or agency that has experience handling medical conditions such as depression.
Like we stated previously in this article, it is extremely important to give yourself as many options as you can when applying.
This can only be done with you are working with an agent who has access to more than 50+ top-rated life insurance companies.
This allows them to effectively shop your case with multiple companies and allow you to select the company that is offering the most favorable prices for coverage.
Ultimately, this will also open the door to obtaining the most robust coverage at the desired coverage amounts for you and your family.
Also, be sure to check out our other guides below to learn more about how different types of mental health conditions can affect life insurance approval and rates:
How Mental Health Impacts Life Insurance
When shopping for life insurance, both your mental and physical health will typically be evaluated. This is done initially by answering specific questions on the application. While question format varies by company, you can generally expect questions like:
- When were you diagnosed with your mental health condition?
- What severity is your mental health diagnosis ?
- Have you been hospitalized for a mental health condition in the last 12 months?
- What is the frequency of your episodes and when was the last one?
- Do your symptoms affect your ability to perform daily living tasks?
- Do you currently have a treatment plan and are you following it?
Certain mental health conditions that have a higher likelihood of suicide such as severe anxiety or depression, schizophrenia and OCD, may result in higher premiums than other mental illnesses.
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 the treatment plan, have not been hospitalized recently and have a consistent employment history.
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Can You Be Denied Life Insurance Because Of Depression
Yes, its possible to be declined life insurance for depression, but its very unlikely.
There must be a certain level of risk, supported by reliable and relevant sources, which allows them to decide whether or not to offer you cover.
In some cases, insurers will postpone an application instead of altogether.
This allows them to gather more information regarding the individuals condition before making a decision.
Insurers are more likely to decline or postpone an application for life insurance in the following scenarios:
- If your diagnosis was recent
- If theres been more than one suicide attempt
- If theres been a recent increase in the severity of your condition
- If you have other medical conditions which are affected by, or affect, your condition
If youve been declined cover in the past due to depression or anxiety, then all is not lost.
Reassureds specialist impaired risk team has helped 45% of people whove been declined elsewhere secure affordable life insurance.
What Happens If Your Mental Health Changes
Any changes to your mental health wont have any impact on your life insurance coverage after youve purchased your policy. Your rates will remain the same as long as you keep paying the premiums.
If your mental health worsens shortly before or during your application process, it may impact your approval odds or your rates you might be denied coverage, or your premiums might become too expensive. But youll still have options. After you find a treatment plan that works for you and maintain it for a year or two, you can try to apply again.
On the other hand, if your mental health significantly improves, you may want to shop around for a new policy to confirm you are getting the best rates possible.
In both of these situations, insurance companies generally like to see consistent and effective treatment for at least six months to one year. If you are in the middle of switching medications or treatment, they may ask a few more questions about your health to determine your rates.
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Will Life Insurance Pay For A Suicidal Death
Across the board, it is common for life insurance policies to include a suicide provision or clause. This clause specifies that a life insurance provider will not pay the policys death benefit if the insured dies by suicide within the first two years of the policys coverage period. The reason for the suicide clause is logical from the perspective of the insurance company: it is designed to stop applicants from having a financial incentive to commit suicide. In cases where an insured person commits suicide after the exclusion period, their beneficiaries are entitled to the whole death benefit.
That being said, if a person disclosed a depression diagnosis in their life insurance application and was approved for coverage with certain exclusions , death by suicide would automatically void their coverage and death benefit.
Can I Get Life Insurance With Depression Anxiety Or Mental Illness
The short answer is yes, but it will depend on a number of factors. If you are thinking of applying for life insurance and suffer from, or have a medical history of depression, make sure you read this article in full before you make an application as it can save you both time and money.
In this article we tell you everything you need to know, including the questions the insurance companies will ask you, which insurance companies are likely to offer the best cover and also the cheapest way to apply for life insurance if you have or have previously suffered from depression. If you already know your stuff and simply want to know the cheapest way to buy life cover, jump to ‘Which is the best life insurance company if I have depression, anxiety or mental illness?’
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Which Is The Best Life Insurance Company If I Have Depression Anxiety Or Mental Illness
Every life insurance company has a slightly different underwriting stance and so not every insurer will treat you the same. I have worked in the life insurance industry for over 20 years and have seen many examples where a person has been declined insurance with one insurer but has been offered cover elsewhere. The key is to understand which insurer is the best fit for your own personal circumstances and the best way to find that out is to speak to an independent specialist* who, having asked the right questions, will have the experience and knowledge to put you in touch with the best life insurance company based on your answers.
Comparison sites and online calculators are not sophisticated enough to understand the complexity of depression and mental illness. They do not go into the level of detail that is required to get an accurate quote and may result in you applying through an insurer that will significantly increase your premiums or even worse, decline your application. We have personally vetted the services of one of the UK’s leading insurance brokers*, which specialises in finding the most suitable cover for those with medical conditions such as depression, anxiety and mental illness. An independent specialist will even be able to help with the application process as they can chase the insurer on your behalf, speak to the doctor’s surgery to chase up medical evidence and even help to put your policy into trust.
Does A Life Insurance Policy Cover Suicide
Most life insurance policies will pay in the event of a claim arising from suicide, however most will have a suicide clause that excludes any claims within the first 12-24 months of the policy going into force. A life insurance company will detail its suicide clause in its terms and conditions, often called a ‘Key Features’ document. We have shown an example of a suicide clause below.
Royal London Suicide clause:
During the first year of your policy, which begins on the start date shown on your policy schedule, we wont pay a claim for suicide. We also wouldnt pay a claim if your death is a result of your own intentional actions. This would include if you attempt suicide and survive, but later die from complications relating to your attempt. This would also apply in the first year of your policy were you to suffer a terminal illness as a result of your own intentional actions. We will, using our reasonable opinion, decide the most likely cause of death or terminal illness. Based on that we will decide whether to pay a claim. We wont necessarily rely on what is shown on a death certificate or coroners report or an equivalent of these. If we reasonably believed youd died or suffered a terminal illness as a result of your intentional actions, we would cancel the policy and not pay any claim. We also wouldnt refund any payments you had made to us.
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Life Insurance Rates With Depression
Heres some good news: people with depression can still get Preferred or Preferred Plus rates!
During the series of health questions most insurers require, youll be asked about your depression diagnosis, the severity, the timeframe, and how it was or is treated.
If its been several years since you were treated with depression and you no longer take medication, then it wont jack your rates up.
As long as youre managing your depression carefully, you can end up in the best possible class.
The most common rate class is Standard.
Having depression does put a red mark on your application.
If you have any other health problems or other red marks, then youre probably going to be put down a peg when it comes to your rate class.
Standard rates are not the lowest, but they are still extremely affordable with most companies.
If youre in exceedingly poor health, there is always a chance youll get sub-standard rates.
So if you have depression or anxiety paired with other major health complications, the carrier might be more wary of awarding your coverage.
What If I Fail To Disclose A Mental Illness On My Life Insurance Application
Although its intimidating to disclose any mental health issues on a life insurance application, doing so is critical. If you dont disclose prior diagnoses, you risk invalidating your insurance policy. Thus, your beneficiaries may lose out on your life insurance payout when they need it the most.
If you fear being denied life insurance due to your mental health condition or want to understand how to best approach purchasing life insurance while suffering from a mental illness, reach out to one of our advisors today. We can explain which insurers and policies can best accommodate your situation.
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What Are The Best Policies For People With Depression
Most people with depression can qualify for a standard life insurance policy, albeit at a higher premium than someone with no history of mental illness. If your depression is well managed, you may even be able to get a policy at rates similar to those without a diagnosed mental illness. Shopping around for affordable coverage and working with an insurance agent can be helpful to find a policy that is right for you.
If your depression is severe, not well-controlled with medication, has led to hospitalization, or has resulted in suicide attempts in the past, obtaining a standard policy will be much more challenging, and many insurers will likely deny you coverage. However, you still have options.
Some life insurance policies are guaranteed issue, which means you can get covered regardless of whats in your medical history. These policies usually cap coverage at a relatively low amount, but they can still provide funds for your family in the aftermath of your death. If you cant get a standard policy, a guaranteed issue policy is likely better than not being covered at all, and you will not be denied.
It is important to note, however, that almost all life insurance policies contain a suicide clause. Suicide clauses either prohibit the payment of any death benefits in the event that a policyholder dies by suicide or allow the company to pay only a small percentage of the death benefit in the event of a death due to suicide.
Instant Approval And Anxiety And Depression
Term life insurance carriers may instantly approve consumers for a policy.
This process, which is called instant approval, involves an insurance company using data from your medical history to inform an algorithm that predicts your life expectancy and risk profile. Instant approval automates the insurance process and doesnt involve any medical exams or extensive paperwork.
Though its possible to get instantly approved for a life insurance policy with some pre-existing conditions, insurers generally seek more information and will require medical underwriting for applicants with:
- A history of anxiety or depression, especially if someone has been hospitalized as a result of these conditions
- Someone taking medication or has been diagnosed with chronic depression or anxiety
For these reasons, its less likely that someone with diagnosed anxiety or depression will be instantly approved for a life insurance policy.
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Applying For Life Insurance
You should always be as honest as possible with your insurer, but thoughtful at the same time.
You will want to give your insurer the impression that you are seeking treatment, or that the depression is behind you.
It’s essential that you follow your doctor’s instructions and tell the insurer as much as you can when you apply.
Seeking successful treatment for depression is one of the ways to ensure that the provider accepts your application.
Honesty is important for all medical conditions when applying for life insurance.
It’s unfortunate that a bout of depression in the past can follow you throughout your life, but there are ways to ensure you get the best life insurance coverage — even with depression in your medical history.
Guaranteed Issue Life Insurance
If your mental health diagnosis causes you to be declined for coverage, you do have another option. Guaranteed issue life insurance is a type of whole life insurance that, generally speaking, does not require health questions or a medical exam.
You will have to answer a few basic personal questions, which are no different than the basic form for standard life insurance. With a guaranteed issue policy, you will most likely get instant approval and can keep the policy as long as you pay the premiums.
Not all companies offer guaranteed issue life insurance and most cap coverage at $25,000 or $50,000. Since guaranteed issue is whole life insurance, it is often more expensive. And because there is no health assessment, rates for this type of coverage can be the most expensive because they are on a high-risk basis.
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Does Seeing A Psychiatrist Affect Life Insurance
If youve been referred to a psychiatrist or other professional in the course of treating a mental illness, you need to disclose it to your life insurance company. While this information will not exclude you from receiving life insurance coverage, it may influence the premium rate class for which you are eligible.
Psychiatristsnot to be confused with psychologistsare medical doctors that specialize in mental health. Most who suffer from mild clinical depression remain under the care of a primary physician. If the patients depression becomes less manageable and is disrupting their day-to-day life, they will often be referred to a psychiatrist for specialist care.
In the eyes of a life insurance underwriter, seeing a psychiatrist can therefore be indicative of a more serious case of depression, anxiety, or bipolar disorder, which could exclude you from a preferred rate category. You may still, however, be eligible for a standard rate.
What Is A Guaranteed Issue Policy
A guaranteed issue policy is life insurance that does not depend on your health. This means that you will be able to get life insurance even if you have had a stroke and have been declined before. However, there are a few drawbacks that you should consider before getting this type of policy.
Many insurers that offer guaranteed issue life insurance policies have a limit on the death benefit. This amount is usually between $25,000 and $30,000 depending on your age.
If you die from natural causes, your family will have to wait for two or three years before the company will pay the full death benefit. Most companies, however, will pay a benefit equal to the total premiums paid in plus 5 to 10 percent.
Since the insurer is not sure how healthy you are, they will charge you more for your life insurance policy than someone who is healthier.
Although there are some disadvantages to guaranteed issue life insurance, it is still a better option than asking your loved ones to pay your final expenses.
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