If you have been diagnosed with depression or anxiety disorder, or you have a history of these mental illnesses, the last thing you need is to be denied life insurance because of it. However, you are more likely to avoid this if you understand what term life insurance providers are looking for.
We at Chooseterm.com are connected with over 30 different insurance companies, and we will work to help you get not only approved, but the best rates possible. So we can do our job the best that we can, we will need to have some information about your depression/anxiety disorder. Keep reading to learn more about what to expect, but know that you can always start looking at quotes right away using the quote form right on this page.
Does Depression Affect Eligibility for Life Insurance?
The short answer is yes, it can. The long answer is considerably more complicated.
First things first, you should know what the term “depression” actually means. True clinical depression is more than being sad. If you’ve been diagnosed, this means that you have had persistent “down” feelings for a period of time and have experienced a loss of interest in things you formerly enjoyed. Clinical depression changes the way you think, feel and behave. In fact, an estimated 19 million Americans are currently living with major depression, so you are definitely not alone.
Years ago, even mild depression often resulted in life insurance denial. Now, however most people with depression get approved for life insurance coverage.
The reason depression can affect your life insurance eligibility is because depression increases your risk of physical issues, as well as your risk of suicide and putting yourself in dangerous, potentially life-threatening situations. The more your depression is controlled with medication or therapy, the better the rates you will get for life insurance.
Life insurance rates are based on health ratings, which range from Preferred Plus to Substandard, with Preferred Plus being the cheapest and Substandard being the most expensive. Generally speaking, if you are on one medication for your depression or anxiety, the best possible health rating you can get will be Preferred and you can still get excellent rates. If you are taking two or more medications, the best rating you will be able to get will be standard plus. Keep in mind that the exact health rating you get will also depend on your overall physical health and other factors like age, family health history, etc.
Honesty is Key
Being honest with both your insurance agent and the companies you are applying for coverage with is vital if you want to be approved. Even if your disorder did not result in hospitalization, long-term medication or other treatment, hiding or omitting information about your depression can result in future denial of your life insurance claim.
Insurance companies will want to know a lot about your condition, including whether it has been linked to a major life event or has been ongoing and chronic without an obvious cause. Depression linked to a major life event like the death of a loved one is most likely not as long lasting or as damaging as other kinds, and insurance companies are far more likely to offer you the best rates.
If you have been hospitalized or have received psychiatric treatment resulting from your depression, you will probably get a table rating, which means a higher rate.
To get started on learning more about term life insurance with depression and getting the best rates possible for you, simply fill in our contact form on this website.