Top Facts to Know about Life Insurance for Depression before Application

Date: March 23, 2022 Posted by: Admin In: Finance

Top Facts to Know about Life Insurance for Depression before Application

Today many people show that they are suffering from some form of mental health problem or another which cause health issues. Consequently when someone with depression is trying to get insurance, they will be told that they are a high risk category and that premiums are going to be very high.

Life Insurance for Depression

Life Insurance for Depression

Some insurance companies do not provide insurance to people with depression while others offers it based on certain criteria which must be satisfied by the applicant.

Questions Posed To Applicants Seeking Cover With Depression

Companies offering insurance for depressed people ask a lot of questions because they want to find but how much of a risk the applicant is before issuing a policy. In case of those with mild depression, the premium charges are nominal.

However,  for those with severe depression, who are taking depression medication or who have been hospitalized due to it, the rates are very high as they fall under the high risk category. Here is a look at the list of questions likely to be asked by life insurance providers for those seeking cover with depression:

  • What are the symptoms experienced and whether the applicant has been affected by mental illnesses other than depression?
  • Has the applicant taken time off work or has quality of work become affected due to depression?
  • How often does the applicant experience periods of depression and how long does each period last?
  • Have the applicant sought medical treatment for the problem and if so, what type of treatment has been taken?
  • Is the applicant still receiving treatment or has the problem been dealt with and  no bouts of depression have been felt since the last treatment session
  • Did the applicant get hospitalized due to depression and if so why and when?
  • Is there a history of depression in the family?
  • At any point of time did the applicant contemplate suicide?

Important Points To Keep In Mind For Life Insurance To Cover Suicide

It is to be noted that insurance companies offering a life policy for people with depression issue a policy only after finding out their complete medical history. So, when they look at this history and find out that the applicant has been diagnosed with depression but not taking treatment, the rates charged are high. On the other hand, if the history shows that the applicant has taken the situation seriously and undergoing treatment sessions, taking pills regularly etc. the rates come down.

Life Insurance For Depression Sufferers

When the insurance company asks questions about depression it’s vital for applicants to give honest answers because they can find out the truth. If they find out any lies, they will charge more rates that otherwise.

In case any information on the depression problem has been hidden in the event of any incident by which the policy holder passes away, the beneficiary will not get enough money or might even be denied settlement on account of fraud behind the cause of the incident.

Can you get life insurance with mental illness?

Today, it is vital to take a life insurance policy to bring more security into your life. However, it is to be noted that there are many factors to consider when there are mental health issues involved.

So, if you are having depression and want to take out a policy, look specifically for companies who can offer it at the best rates and check out their conditions for policy issue and opt for a policy when you can be satisfied with them. 

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