Is It Possible to Purchase Life Insurance for Mentally Ill?

Purchasing life insurance coverage can be a positive move, implementing a death benefit to help secure the future of your loved ones or children. Varied features, such as accumulative account values and the option to draw against your policy, can also be used to align with your plans.

One aspect of the application process is that you must divulge all medical conditions, including mental health problems. Insurance companies may not reject an applicant based on a mental illness alone. Still, they will usually review several factors to see whether they can offer the requested coverage and provide a life insurance policy estimate.

Life insurance companies use an underwriting process to evaluate the insurance risk, which will also differ between companies. Therefore, if one coverage policy is rejected by a company, this does not necessarily mean you won’t be able to purchase other types of life insurance solutions. You can talk with life insurance companies and/or agents to help you determine your eligibility for a policy.

Many people purchase life insurance to help ensure they have provided for their loved ones and to help enhance their financial futures. People living with mental health conditions are no exception and could potentially be more conscious of how important it is to have a financial benefit should their health decline.

Although a life insurance company may not deny coverage altogether, they may offer coverage at a higher premium rate if they consider the applicant high-risk. However, mental health challenges are far from rare, with the National Institute of Mental Health indicating that as many as one in five adults in the US has some mental illness challenge (57.8 million in 2021). *

Insurance companies may ask you to work through an evaluation process to help them determine whether they can offer life insurance coverage. This will normally include questions around:

• The exact diagnosed condition
• The date of the diagnosis and the overseeing practitioner or doctor
• The severity and frequency of symptoms
• The ongoing treatment plan and medication
• The impacts of the condition on your life, such as the ability to retain employment

Life insurance companies may also ask for information about any history of self-harm or intrusive thoughts. While disclosing this depth of personal information may be uncomfortable, you must be transparent when applying for and evaluating life insurance policies. If you have a pre-existing condition or are undergoing treatment for a mental health issue and do not disclose this, your life coverage could later be canceled as if it were never in force, or a policy claim made in the future could be denied.

Insurance companies have varied policies and requirements based on sound actuarial principles that influence eligibility for their company products and how they calculate policy premiums. You can use a life insurance calculator to help estimate how much money your policy will cost. Some will ask general questions on their initial documentation, and if you indicate ever having been diagnosed with a mental illness, they may request a medical examination before granting you a policy.

Other life insurance companies will only require further information and resources if you have been diagnosed by a medical professional with one of a list of conditions. They may include:

• Anxiety and depression
• Bipolar disorder
• Obsessive-compulsive disorder
• Post-traumatic stress disorder
• Attention deficit hyperactivity disorder
• Borderline personality disorder
• Schizophrenia

Although the decision may rest with the insurance underwriter, the nature of your mental health condition and how it impacts your life from an actuarial perspective can be the most relevant factors from a life insurance company’s perspective.

Awareness of mental health conditions and access to treatments ranging from medications to therapies and community support services have expanded rapidly in recent years, * making it easier for individuals to get a life insurance policy.

From an insurance company viewpoint, a mental health condition that is demonstrably well-managed, under the care or guidance of a physician or other medical professional, and that has not resulted in any emergencies, interventions, or admissions in recent years may not have a significant impact on your policy.

In the past, it was more typical for a person with a mental health disorder to be refused life coverage if they were unable to work, but broader access to treatments and understanding of mental health conditions has begun to reduce the proportion of people impacted to this extent. Ultimately, much depends on the specific insurance policy and the insurer’s underwriting policies, but the better controlled and monitored your health, the less likely it is to disqualify you from a life insurance product.*

Is It Possible to Purchase Life Insurance if I Am Taking Antidepressants?

Potentially, yes–antidepressants can be prescribed to help treat and manage a mental health condition over the long term. Much may depend on how long you have been prescribed antidepressants, their effectiveness, and the type of life coverage product you are applying for.

Why Is It Harder to Get Life Insurance with a Mental Illness?

Life insurance companies analyze the risk of each person they insure based on specific actuarial standards. The same process applies to people in high-risk occupations, such as those serving in the military or participating in adventure sports.

Insurers must verify each person's risk profile before approving insurance coverage, although a mental illness does not necessarily mean you cannot purchase life insurance, nor does it mean a refusal from one insurance company will be repeated by another.

What Happens if I Have a Mental Illness and Do Not Disclose This on My Life Insurance Paperwork?

Disclosing any risk factors and physical or mental health conditions that could affect your eligibility for a life insurance product is essential. Failing to do so could mean your life insurance coverage is invalid, a future policy claim is rejected, or, in the worst-case scenario, the insurer files a claim of insurance fraud.