Getting life insurance with depression is a much easier task today than it was a few years ago. Thanks of course to a better understanding of depression and it’s treatment by the life insurance companies. As time goes by it is getting much easier to get affordable payments and higher approval rates with life insurance companies.
So the chance of getting life insurance with depression is definitely on the bright side. Depending on your situation it is even possible to get preferred or standard rates. These are the ratings that the company will assign to you that will determine your monthly rate.
You may be wondering why individuals with depression get such a hard time and the reason is that statistically, people that are depressed have a shorter lifespan. So don’t take it personally and read on so you can get the best rate out there. And remember you’re not alone, there are over 16 million Americans who have been diagnosed with depression and we personally have helped a ton of clients.
Types of Depression
Not all depression diagnosis is the same and you should know the type you have so the agent you’re working with can look at the symptoms in order to see which companies will be best for you. Let’s take a minute and break down various types of depression:
- Major Depressive Disorder – The ongoing feeling of sadness along with lack of interest in life. This type of depression your mood is low at all times with no fluctuation.
- Seasonal Affective Disorder– A depression that occurs at the certain time of the year usually in the winter time or during periods of heavy rain. A lot of people in Alaska are diagnosed with this disorder.
- Persistent Depressive Disorder – This type is similar to the major depression when it comes to the symptoms experienced but less severe.
- Postpartum Depression – A depression that women experience after having a baby which tends to result from hormonal imbalanced caused by pregnancy.
- Bipolar Disorder – Unlike major depression where you are in the constant low state, with bipolar you may have a manic period for some time and then depressive period. If you have bipolar disorder, read our article here.
- Premenstrual Dysphoric Disorder – Also known as extreme PMS where women will experience drastic shifts in mood due to their monthly menstrual cycle.
- Atypical Depression – Has similar features as major depression except for a big caveat being positive experiences can elevate your mood.
Most of the clients that reach out to us have Major Depression or MDD and Bipolar Disorder, in rare cases, we do run into Seasonal Affective Disorder and Postpartum Depression. If you found this useful check out this great article from verywellmind.com, which breaks down each type with more detail.
Factors Life Insurance Companies Consider with Depression
If you have depression or had one in the past, life insurance companies will want to know some extra information. Very important one is how long ago you were diagnosed. If you had depression for a longer period of time it is better from the underwriting perspective. Since there is some time to show how well you managed your depression. The type of medication you take and how many will also have an effect on your rates. For instance, someone only taking one prescription may get preferred rates as opposed to two or three different types of medications.
Let’s list out all the questions that the underwriter may ask and why:
- What is your employment status? – To find out if your condition is causing you to be on disability or be limited to work less time per week.
- What Medications are you taking and dosage? – By looking at the type of medication, amount of medications and dosages, the underwriters will know how severe your condition is.
- How long have you had depression? – By asking this question they are trying to see how well you have been managing the condition. The longer you been treating it the better in their eyes.
- What’s the consistency of your psychotherapy? – The underwriters like to see that you’re consistent with your therapy session whether you’re on medications or not. If you don’t follow the recommended therapy frequency it can affect your application negatively.
- Hospitalizations or episodes? – Another question that helps the underwriter determine how good or bad your condition is. If you have been hospitalized recently or more than often it will be harder to get you insured.
- Have you ever attempted suicide? – Anytime someone answers Yes to this question expect to be turned down unless 5 or more years have passed.
- What was your diagnosis? – The objective of this question is to figure out what type of depression you have. Typically, you can be diagnosed with clinical depression, dysthymia or a seasonal affective disorder.
Here is a quick breakdown of what category your depression may fall under:
Mild – If you take one medication with no complications and minimal psychotherapy you are considered to have mild depression. With mild depression, it is possible to get preferred rates.
Moderate – If you had a history of substance abuse, hospitalization, heavier medications use you will most likely get standard or substandard rates ranging from table 1 to table 4.
Severe – Someone who has recently been hospitalized due to depression or substance abuse is considered a severe case. People with manic depression also known as bipolar disorder will fall into the severe category as well. For anyone in this category substandard rates ranging from table 6 to table 10 are possible but you are also more likely to get declined in this category as well.
Best 4 Life Insurance Companies for Depression
We can tell you that when it comes to picking a life insurance company with depression, you have to work with the right ones. We work with over 60 companies but there are about 4 that will give you the best deal. Of course, most companies can be applied to but who wants to overpay for life insurance. The four companies are Lincoln, Prudential, John Hancock and TransAmerica.
Lincoln Life– This highly reputable company is our go-to choice for anything concerning mental health. We have placed a lot of policies with them for depression, PTSD, anxiety, and controlled bipolar disorder. If you have mild depression you can get preferred rates with this carrier and their rates are pretty competitive especially for people over the age of 40.
Prudential– If you want a top brand name life insurance carrier while also getting approved for life insurance with depression, then this is the right carrier for you. Prudential has one of the most favorable underwritings in the industry and will do their best to get you a fair rate class. They will also offer preferred for mild depression and will also consider moderate/severe cases as well but at the standard to the substandard rating.
John Hancock– Another heavyweight in the industry who is known for their reliability, great products, and service. Just like Lincoln and Prudential will consider you for a preferred if your case of depression is mild. However, their rates tend to be higher but surprisingly a lot of people are okay with it since its such a reputable and well-known carrier.
TransAmerica– Although they will not offer you a preferred rate like the rest on this list. They will, however, consider pretty high-risk cases of depression and will do their best before turning you down.
If you can’t get approved than try Guaranteed Issue Life Insurance
In the event that you have tried the above-mentioned life insurance companies and you simply can’t get approved because you have severe depression there is another way. Try a guaranteed issue life insurance policy which will get you up to $25,000 of life insurance with no exam and no questions. If $25,000 is not enough you can get multiple policies in order to get the desired amount. It is important to note that there is a 2 year waiting period before the full death benefit gets paid out.
Life Insurance Sample Rates with Depression
Just to get an idea lets run quotes for a 42 year old female looking for $250,000 20 Year Term with different rate classes to see how they affect the premium. Lincoln is a good option for depression applicants so let’s use them.
- Preferred Rate – $23.36 per month
- Standard Rate – $35.50 per month
- Substandard Table 6 Rate – $79.65 per month
If you’re older or younger your rate will be different and as well as if you have any other conditions or smoking habits.
What can you do to get a better deal with depression?
As you can see there is quite a difference there and you can get better ratings if you follow a few steps. If you work with an independent broker who specializes with high risk, they will make sure to apply with a company with most favorable results. In many cases we seen clients get a substandard rating with one company and standard with another one which saves a ton of money. At the end of the day whether you end up with standard or substandard rates it is still good news to know that you can get approved for life insurance. We always recommend reducing face amount or term length to get a lower monthly premium before we recommend delaying the purchase. Because protecting your close ones is a priority and tomorrow is never promised.
In addition to working with the right broker and picking a favorable company, you can also have your agent draft a cover letter. What a cover letter does is provide some additional details about you that can’t be listed on the application. In the cover letter, you can include things like occupation, family life, volunteering, health regimen and your hobbies. If a person has a cover letter showing that they are passionate about their work, love to spend time with family and have 5 yoga classes per week, there are more likely to get a better health rating from the insurer.
Work With Us!
Whether your depression is mild, moderate or severe you will need to apply with the right life insurance companies. Even though we work with over 60 different companies we recommend only a few to people with depression. The reason is that not all companies will treat you the same and each company has a competitive spot for different conditions. We will recommend the right company if you can’t decide form the four we listed before. If you have mild depression you can run quotes here, Just make sure to select preferred/standard health class to get accurate quotes. If you have moderate or severe depression you will likely get substandard rates which are a custom quote. For a custom quote please call us at 888.492.1967 and we will help you or send us an email. Welcome to InsureChance!
