If you or anyone you know has ever been through a mental health issue like depression, anxiety, burn-out or a more severe psychosis, you know how damaging it can be. The impact is not limited only to the person experiencing the problems, but also extends to friends and family who are trying to help and get caught up in the unhealthy environment.
This article will briefly touch on how some very common mental health issues could affect your ability to qualify for different types of insurance. There are different risks associated with a certain disease and the type of risk you are insuring against (i.e. life insurance vs. disability insurance coverage). Hopefully this article will shed light on some of the issues.
Getting Life Insurance with a Mental Illness
When applying for life insurance, the insurance company is typically looking for healthy candidates to insure. If you have recently been diagnosed with a major illness, like cancer, heart disease, diabetes, etc. you cannot qualify for life insurance anymore. So what about a mental illness? These can come on very suddenly in a person’s life and last for many years, if not the rest of their life. Can you still qualify for life insurance if you have a condition like depression, anxiety, nervous breakdown or other similar diseases? The answer is really dependant on your current situation.
If your diagnosis is very recent, you will most probably be postponed for life insurance coverage for about one year. This is due to the insurance company wanting to see how well you have responded to treatments and medication after a sufficient period of time. A condition like depression can quickly worsen and lead to some very serious negative outcomes, including suicide. Anxiety that is poorly managed can lead to terrible panic attacks, phobias, and other very unhealthy behaviours. Uncontrolled mental illnesses that are not treated or managed can lead to very unhealthy lifestyle choices. Even if the person was fit and healthy before their mental illness, they could easily become addicted to food, alcohol, drugs and other things. An insurance company will not want to take on this type of risk, as the chances of things going badly in the person’s life are too great.
On the flip side, if you are able to properly manage your disease, the outcome very often is living a normal healthy life. An insurance company looks for certain positive behaviours and activities that would lead them to believe you are dealing well with your mental health issues. Did you seek treatment, counselling or the help of your doctor? Did you take medication when appropriate, and have you responded well to the medication? Are you continuing to get ongoing treatment that is helping, and is your doctor on top of your mental condition? Do you see the doctor regularly to check in with your life and ability to cope with your stress levels? If these questions are answered positively, then yes you can get insurance. With a few years of good control of a mental health issue where you are functioning normally (with or without medication) you can expect to get your insurance with standard rates. Most insurance companies will not offer preferred rates to you if you are on medication, but you can qualify for a standard policy, like an average healthy Canadian.
Getting Disability Insurance with a Mental Illness
Disability insurance is a whole different type of risk protection, and the underwriting will be very different. With life insurance, the concern is whether or not your life expectancy is shortened or are you going to live as long as an average Canadian. Disability insurance is focused on the likelihood you will be able to work, and perform your job. Here a mental illness can be a serious problem for qualifying for the insurance.
The fastest growing disability insurance claim in the workforce today is mental health issues. Stress related issues like burn-out, nervous breakdown, anxiety and depression can very quickly make a person unable to work. These sorts of mental illnesses cost the employer and insurance companies billions of dollars each year in lost productivity and claims. The insurance company will take a mental health issue very seriously.
Here is what the insurance company will be looking for when underwriting a mental illness:
Have you recently been hospitalized for your mental illness?Have you lost time from work in the last 5 years because of your mental illness?Are you on medication, and if so, how has it been working for you?Do you require ongoing counselling and support to function, or are you living a normal life without extra support?How stressful is the type of work you do, and was it your job that contributed to you developing the mental illness?
All these questions and more would be answer in the insurance company’s underwriting investigation of your application. A doctor’s report would be ordered from your family doctor and if you have ever seen a psychiatrist or psychologist, a report from them would also be required to assess your case.
The best possible outcome would be you are managing your illness very well, and there is no likelihood of serious trouble, hospitalization, or any other break-down. In this case you could get a standard policy. If your doctors feel that you are still struggling with you condition and more therapy and/or medication is needed, you could either be declined your insurance or be offered coverage with an exclusion for mental health claims (no disability benefits would be paid if you went off work for a mental health issue).
It is best to apply for disability insurance when you are stable, and any serious problems you have experienced are behind you and life has returned to normal.
Getting Critical Illness Insurance with a Mental Illness
Very much like the previous two scenarios, getting a critical illness policy when you suffer from a mental illness all depends on your current prognosis. Critical illness insurance is concerned with the risk of you getting cancer, heart attack, stroke, bypass surgery, and a whole host of other serious illnesses and injuries.
A very strong relationship between cardio vascular diseases (heart attack, stroke, bypass surgery, etc.) and stress exists. Stress in a person’s life can become unmanageable, leading to physical symptoms. While you are still unstable and dealing with a mental health condition, you would be declined for critical illness insurance. The risks are too great that you could begin to suffer from physical symptoms related to an uncontrolled mental illness. Also, as stated before, a mental illness could lead to addictive or destructive behaviour, also worsening the health of a previously fit individual.
If you are controlling your mental illness and living a normal life, then you should qualify for critical illness insurance. There might be a small rating of 25 – 50% more premium than the average person since the risks of stress related chronic illnesses would still exists for you. This would still be a good offer considering what you have been through and what you will be dealing with for possibly the rest of your life.
In summary, mental illness and mental health issues are very common. Insurance companies see these cases all the time and have a great deal of experience underwriting insurance for people who are suffering from and managing a mental illness. Just like any other illness, you can’t get the insurance while you are in the middle of a crisis. You can’t get the insurance when you have recently been in hospital or had a major event related to your mental illness. You need to be at a healthy and stable place in your life when you apply. You need to be in control of your life and your illness with a secure, if not bright, future ahead. We all know anything can happen to us at any time, and that is why we buy insurance. Your mental illness should not increase your risks when you apply, but should in effect be neutralized through treatment and control.
If you thought you were uninsurable because of a mental illness, it never hurts to get some professional advice. You can speak with us at Life Guard Insurance in the strictest confidence to see whether or not you could qualify for insurance and risk protection.
