Co-Founder, Coastal Financial Partners Group, California
Depression can present underwriting challenges. But in many cases, an otherwise healthy individual with only mild depression or anxiety accompanied by documented stability can obtain standard or even preferred risk class.
It is important to understand that depression is an illness that affects the entire body, not just the mind. Depression will afflict one in five people during their lifetime. The underwriter, while concerned that the proposed insured has suffered from depression, is more concerned with “recovery”.
An experienced life insurance professional will know how to best present the case to the life insurance underwriter.
Depression can affect life insurance rates very little, or it can affect them a lot. The severity of the depression, whether or not there were suicidal thoughts or attempt(s), whether there was hospitalization for depression (and if so, how often and how long ago), if the applicant is on disability for depression, how many medications are being used to treat the depression, and whether therapy is part of the treatment can all affect the rates.
Mild depression treated with only one medication can result in preferred rates. A long history of depression that is resistant to treatment and has a high risk of suicide can result in a decline. In my experience, severe depression is far less common than mild depression, and most policies involving depression get rated favorably.
Depression can affect life insurance, but does not necessarily do so. Mild depression that is well controlled by one medication, where the applicant has not missed work or been hospitalized due to the depression, and has shown stability for over a year, can get Preferred rates from some companies.
At the other extreme, if the applicant has had a recent suicide attempt, is on disability for depression, or is in a period of trying out new medications, you may need to take a simplified or guaranteed issue plan until you have had some stability for a while.
There are many options for people suffering from depression. You will definitely benefit from using an agency that specializes in impaired risk life insurance to find your best rate.
That is an excellent question! One of the things that insurance companies are very careful about is your mental state when taking out insurance, or being insured. All legal agreements want you to be "of sound mind" when entering into the agreement. They will want to be sure that you aren't taking out a policy for the wrong reasons, and the agent selling you the policy will be required to report what they see/feel about your motives and mental state. I've had clients that were denied coverage for the medications that they were on, and were offered reduced coverage as a result, and I've had some that were accepted with a Doctor's report on the stability and treatment history of the struggle with the depression. It really helps to have an independent agent who can understand your struggle, and guide you through the process to find the best company and policy for you. If you need help, please feel free to contact me, okay? Thanks for asking!
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It is important to understand that depression is an illness that affects the entire body, not just the mind. Depression will afflict one in five people during their lifetime. The underwriter, while concerned that the proposed insured has suffered from depression, is more concerned with “recovery”.
An experienced life insurance professional will know how to best present the case to the life insurance underwriter.
Mild depression treated with only one medication can result in preferred rates. A long history of depression that is resistant to treatment and has a high risk of suicide can result in a decline. In my experience, severe depression is far less common than mild depression, and most policies involving depression get rated favorably.
At the other extreme, if the applicant has had a recent suicide attempt, is on disability for depression, or is in a period of trying out new medications, you may need to take a simplified or guaranteed issue plan until you have had some stability for a while.
There are many options for people suffering from depression. You will definitely benefit from using an agency that specializes in impaired risk life insurance to find your best rate.