According to the latest studies conducted by the NCBI, the general population in Asia shows a presence of 14.2% for Common Mental Disorders. The worldwide prevalence of mental disorders showed an average of 13.4% having a mental illness can be challenging but can also make life insurance coverage more complicated. Depending on your diagnosis, you may be eligible for specific life insurance policies or find yourself unable to get any.
What is life insurance?
Life insurance is a financial tool designed to provide security and cover the financial costs associated with an untimely death. Whether you’re looking to support your family in the event of your death or want some extra peace of mind knowing that your family will be taken care of at the end, life insurance can help ensure those goals are achieved. With different options for different needs and budgets, life insurance can give you the coverage you need for those unexpected occurrences.
By investing in life insurance now, you can ensure your loved ones are prepared and secure regardless of what happens down the road.
What is classified as a mental illness?
Mental illness is often misunderstood and can be a complex subject to talk about. It encompasses various conditions that affect an individual’s behaviour, emotions, thoughts, and overall mental well-being. Common mental health disorders include depression, anxiety, panic disorder, bipolar disorder, PTSD, schizophrenia, OCD, and eating disorders.
Mental illnesses are severe medical conditions that require appropriate diagnosis and treatment by mental health professionals such as psychiatrists or psychologists. It is important to remember that those with mental illness are not alone; many resources are available to assist in recovery and lead a mentally healthy life.
Things to consider before getting life insurance if you have a mental illness
Here are some things to consider when applying for life insurance while living with a mental health condition.
Understand your diagnosis
Before attempting to apply for life insurance, take some time to understand your diagnosis and the severity of your condition. This will help you determine the type of policy best suited for you and ensure that you can get an accurate quote from providers.
When filling out a life insurance application, including all the information regarding your mental illness. Providers need this information to properly evaluate your risk and provide you with an accurate quote. Lying on an application can lead to the rejection of a policy or even fraud charges.
Do some research
Researching different types of policies is essential when attempting to get life insurance while living with a mental health condition. Many providers offer special coverage specifically designed for people with pre-existing conditions like mental illness, so finding one that meets your needs may be more accessible. If you have had suicidal thoughts you may want to check if life insurance covers suicide.
Consider term policies
Term life insurance policies are typically more affordable than whole-life policies and are generally easier to obtain if you have a mental health condition. It’s essential to keep in mind, however, that these policies only last for a certain period and may not be the best option if you plan on having coverage for a more extended period. It’s imperative the you get the best long term care insurance for your unique needs.
Work with an independent broker
An independent broker can be an excellent resource for life insurance while living with a mental illness. They can help compare quotes from different providers and determine which company will most likely accept your application.
Some life insurance providers have more flexible criteria when offering coverage to people with pre-existing conditions. Be sure to research and find one willing to work with you based on your circumstances.
Get a medical exam
For a life insurance provider to evaluate your risk and provide an accurate quote, they may require you to undergo a medical examination. Be sure to ask about this upfront so that you’re prepared when the time comes.
Consider joint policies or group plans
Joint policies can be beneficial if you live with someone who also needs coverage but has no pre-existing conditions like mental illness. This can help reduce costs since each person will only pay half the premium instead of the total amount.
Group life insurance plans may be another excellent option for those with a mental illness. Employers typically offer these plans, so check with your employer or any professional associations you may belong to about what types of group plans they offer.
Consider disability coverage or no-exam policies
Disability insurance can help provide income replacement if you cannot work due to an illness, including a mental health condition. This type of policy is usually more affordable than traditional life insurance and can provide financial security if you cannot work due to your condition.
No-exam policies are becoming increasingly popular and may offer an excellent option for those with a mental illness who don’t want or cannot undergo a medical exam. Be sure to ask your provider if this is an available option.
With that said
Finding life insurance when you have a mental illness may seem daunting, but there are several steps you can take to get the best coverage possible at an affordable rate. Consider looking into term policies, speaking to an independent broker, getting a medical exam, exploring joint policies, and asking about riders.
Additionally, consider accelerated death benefits, no-exam policies, discounts on premiums, group plans, and disability coverage. By taking the time to research your options thoroughly and finding the best policy for you, you can be assured that you will be covered no matter what life throws your way.
