InsuranceThought — Blogs About Insurance

It’s always best to visit a doctor when you are experiencing anxiety or extreme, unexplained sadness – only a doctor can diagnose what might be going on – but you should be aware that this can affect your life insurance rates or possibly result in a denial of your application.

Because The Centers for Disease Control says that those who suffer from depression and anxiety are more likely to suffer from cardiovascular disease, diabetes and asthma, and have life-altering bad habits such as smoking, binge drinking and eating, and don’t usually get proper exercise, life insurance companies may consider you at greater risk for an early death.

At the time of your policy application, a life insurance company looks at your medical records; they will generally receive a summary of your diagnosis, the treatment you’re being given, and the current outcome. Within this summary, an underwriter will look for key details if he or she sees depression or anxiety listed on the applications, which includes whether or not the applicant has been diagnosed with “chronic” or “situational” depression, anxiety, or both.

Ed Hinerman, owner of Hinerman Group in Salida, Colorodo says, “If it’s just simple anxiety and depression and they take a single medication because they lost their job or a spouse, a fair number of companies will offer preferred rates. Underwriters are looking for whether the anxiety and depression is based on a sudden, temporary life event or has been going on for quite sometime. Long-term anxiety and depression might indicate something much more serious, such as an underlying mental disorder. If the applicant has to stay on meds for the rest of their life in order to function, that would be considered long-term. They would typically get standard to plus standard rates.” He stresses that individuals diagnosed with “situational” anxiety or depression should not have difficult in getting preferred rates.

It is usually not too difficult to get preferred rates from life insurers if you suffer from depression and anxiety if:

• You keep your symptoms under control with just one medication.
• You don’t smoke.
• You haven’t missed work because of your anxiety or depression.
• You have never been hospitalized.
• You haven’t attempted or considered suicide.

The more recent your diagnosis, the more concern an underwriter will have about your affliction. The insurance company may delay your application with a first-time diagnosis of depression or anxiety, but it will depend on what the physician’s records show; what the diagnosis plan is and if you’ve been recently hospitalized are two major factors. If you go on and off medication of your own accord, keep changing types of medications, or have difficulties that lead to a hospital stay, most insurers will be less accepting of your application and may not approve you; if they do, your rates will be higher than they might otherwise be.