Life insurance for mental disorders?
Finding the most affordable life insurance for mental disorders may seem like a daunting task. Mental disorders can make up a whole host of things, from anxiety and depression to psychotic and personality disorders.
The assessment of life insurance for mental disorders requires a careful integration of psychiatric and lay aspects. The amount of coverage applied for, the reason for the coverage, and the choice of the beneficiary are all carefully evaluated before an offer for coverage can be made.
The terminology of psychiatric disease is less precise than that of organic disease. Often the terms used describe a mental state rather than provide a specific diagnosis. Also, the use of terms sometimes differs among psychiatrists, and there is great variability of meaning when psychiatric terms are used by doctors without specialist training in psychiatry.
For someone looking to find the absolute lowest rates on life insurance for mental disorders you must use a special risk agent. An special risk agent is a life insurance agent that is an expert in finding affordable life insurance for mental disorders. They typically will have many years experience working in the special risk underwriting area.
This special risk agent will know the life insurance carriers that specialize in life insurance for mental disorders. After all, there are over 1,000 life insurance companies in the United States. Only a few actually specialize in life insurance for mental disorders.
Each life insurance company evaluates medical history and lifestyle differently. Therefore, one company may underwrite someone with a history of depression or anxiety totally different than another company.
Underwriting factors with life insurance for mental disorders
In addition to the actual diagnosis of the condition, other factors play a role in the final outcome from the insurance company.
Some of these factors are types of medication being used. Any history of hospitalizations? Is the prospect currently working? Has the prospect ever been disabled due to their mental disorder? Ever attempted suicide?
Also, family history of mental instability can also be an adverse factor.
Types of mental disorders
Underwriting life insurance for mental disorders can be challenging for the life insurance companies. Often times the underwriting company must rely on information from a prospects personal physician. Records from a prospects psychiatrist may also be needed. Here are some of the conditions that underwriters often see:
- Bulemia Nervosa
- Dementia
- Alzheimer’s Disease
- Schizophrenia
- Paranoid Disorders
- Neurotic Disorders
- Manic-Depressive Disorders
- Anxiety Neurosis, Phobias
- Personality Disorders
Each of these disorders are potentially insurable depending on the factors discussed earlier. But, how do life insurance companies actually rate these disorders? Let’s look at a couple of examples:
Dan is a 65 year old male diagnosed with dementia. His condition is considered mile and slow progressing. He is able to care for himself and his CT scan reveals mild brain atrophy. No other major health conditions.
Based on the mildness of the disease, an underwriting company could probably offer a policy with around a 200% rate up above the standard rates for his age. A 200% rate up is a huge rate up. But, if coverage is desperately needed a 200% rate up may be an acceptable offer.
Susan is a 50 year female who has been diagnosed with manic depressive disorder. She was diagnosed 3 years ago and has had good response to continuing drug treatment. She is working full time and has no other health concerns. This particular case could be close to a standard offer, but at worse probably a slight rating of maybe 50% above standard.
How can you find the best rates available?
Okay, so now that you know life insurance for mental disorders is possible, how do you actually go about finding the best company?
Fortunately, you have landed on the right page. We are experts at finding coverage for those with pre-existing medical conditions. Here’s how we do it.
As an independent life agency with over 30 years experience we know which carriers underwrite the best. We have contacts with over 75 life insurance companies. We know which ones will offer us the best chance to insure you. We ask the right questions and then we have each company compete for your business.
Below are some of the questions needed to find out what direction we should go:
- Date of Birth
- Male or Female
- Name of your condition
- Date condition was diagnosed
- Medications you are currently taking
- Ever been hospitalized for your condition
- Are you currently working
- Have you ever been disabled due to your condition
- Used tobacco in last 5 years
- Any other medical conditions such as diabetes, heart disease, etc.
In addition to the questions above, it is also important to know how much protection you need an what type of plan (whole life or term) are you considering.
After this information is provided, your special risk agent will shop the carriers to find which carrier might offer you the lowest rates. Once the best carrier provides rates, then and only then will you complete a formal application along with any other exam requirements.
Many life insurance agents make the mistake of having their prospects get examined and fill out paperwork before they even know if a carrier will consider them for coverage. This is a waste of time and a rookie mistake. Why fill out applications and get examined if a company is going to decline you for coverage?
We are the experts at finding affordable life insurance for mental disorders.
Conclusion-
If you would like a free evaluation of your situation, please contact us at 1-888-393-9003 or mike@specialriskterm.com
