In previous generations, struggles with depression and anxiety were rarely discussed. But today, more and more people are opening up about their mental health.
Every day, a new celebrity discusses their mental health issues.
Businesses and organizations are beginning to build programs and benefits to help their employees’ mental and emotional stability.
Because there’s a lot of conversation surrounding depression now, you might be wondering about the relationship between your depression and life insurance options.
Table of Contents
- Depression and Life Insurance
- Top 5 Life Insurance Companies for People With Depression
- Why Depression Affects Life Insurance Rates
- Types of Depression
- No-Exam Life Insurance With Depression
- Life Insurance Rates With Depression
- Does Seeing a Psychiatrist Affect Life Insurance?
- Benefits of Having Life Insurance With Depression
- Bottom Line on Life Insurance With Depression
Depression and Life Insurance
First, we’ll start with our best life insurance companies for people with depression.
Later, we’ll discuss the types of depression and cover how your depression might impact your life insurance options.
With some high-risk applicants, like smokers, there is a consensus among insurance providers on how their premiums will be rated (with life insurance for smokers being much higher).
Top 5 Life Insurance Companies for People With Depression
- Lincoln Financial
- Prudential
- Hancock
- AIG
- Protective
*Learn more about no-medical exam options.
With conditions like depression or anxiety, there is far less agreement across the board.
In fact, there is no standard rating class for depression, making the time you spend shopping for your life insurance even more important.
With a little research, you can determine how much term life insurance you need, or maybe land on a whole-life policy to meet your needs at an affordable rate.
Since some companies have harsher guidelines than others, you need to pinpoint a carrier who is lenient and still awards the best rates possible.
I’ve done a bit of that research for you, comparing and compiling the best life insurance companies for individuals with depression.
Lincoln Financial
Through the years, Lincoln Financial has excelled at selling insurance to higher-risk clients.
They have carved a niche for applicants with higher cholesterol scores, older clients, clients who use tobacco, and more.
One of the categories where Lincoln excels is with applicants with depression or anxiety problems.
Every time I’ve talked to a client with depression who has gotten quotes from several companies, they relay that Lincoln is one of the cheapest options.
Not only are they one of the more affordable choices for individuals with depression, but they also have several plans to choose from.
Lincoln sells traditional level term plans (Lincoln Life Elements Level Term), no exam policies, permanent life insurance, and guaranteed issue plans.
Prudential
Another solid choice for individuals with depression, Prudential is known for its recognizable logo, “The Rock.”
While you’ve probably seen their mountainous logo, you may not know about their rates for people diagnosed with depression.
Prudential is also excellent for any client who is considered overweight, as their weight charts are looser than other companies.
Compared to other carriers, Prudential is more willing to take on higher-risk life insurance clients in general.
Another unique factor of Prudential is their “non-smoker plus” rate class for people who are in great health otherwise, but smoke.
Hancock
Hancock is one of the oldest life insurance companies in America, having been in operation for more than 150 years.
Hancock is an extremely stable company that has perfected their customer service and their life insurance products.
They’ve thrived for a long time, and professionals expect them to continue to for an even longer time.
Not to mention they have some of the best grades from all of the insurer rating companies (A.M. Best, Moody’s, Fitch).
AIG
To be honest, AIG is not going to be the fastest company, but if you’re willing to wait, they can be a great pick.
AIG has plenty of options and rates to rival most of the competition.
AIG believes in tailoring plans to meet YOUR needs, not forcing you into a pre-planned policy.
One of their most unique strengths is their term policy’s flexibility.
For example, you don’t have to buy a 20-year term plan if you only want 16 years.
It’s your plan, and you can customize it to meet your exact needs.
Protective
If you’re interested in buying insurance for your children as well as yourself, Protective has products designed for you.
One of their greatest plans is the “Protect My Child” whole life policy.
If your child is between the ages of 2 weeks old to 17, you can buy this plan and it will give up to $100,000, which will double when they turn 18.
The best part, for sufferers of depression, is that there is no medical exam required. Period.
Why Depression Affects Life Insurance Rates
Let’s look at the numbers.
The fact of the matter is, that depression is more common than most Americans realize.
- According to the 2021 National Survey on Drug Use and Health (NSDUH), an estimated 21.0 million adults in the United States had at least one major depressive episode in the past year. This represents 8.5% of all adults aged 18 or older.
- Depression is more common in adults ages 18 to 25, with 21.0% of this age group experiencing a major depressive episode in the past year. The prevalence of depression decreases with age, with 5.5% of adults aged 65 or older experiencing a major depressive episode in the past year.
- Depression is about 50% more common among women than among men. Worldwide, more than 10% of pregnant women and women who have just given birth experience depression
- Depression is the leading cause of disability worldwide, and it is estimated to affect 350 million people of all ages. The prevalence of depression is increasing, and it is projected to become the leading cause of disease burden by 2030.
- Suicide is the fourth leading cause of death in 15–29-year-olds, according to the World Health Organization.
With more than 280 million people suffering from depression worldwide, life insurance companies are now faced with making decisions on how a diagnosis of depression might change their plans and premiums.
Types of Depression
Not every depression is the same.
With depression, like any other illness, there are different forms and varying degrees of severity.
The specific type of depression you have and the severity of it could change how much your premiums are and your ability to get approved.
Let’s take a look at some of those different types:
- Major Depression
- Dysthymia
- Postpartum
- Seasonal
- Psychotic
- Bipolar
- Situational
Major Depression
Major depression is what most people probably think of when they hear the word depression.
People with major depression have feelings of sadness, less energy, extreme irritability, problems sleeping, changes in eating patterns, and more.
Depending on the severity of major depression, it can prevent people from going about their lives.
Dysthymia
This is a less severe kind of depression.
Most people classify dysthymia as a “functional depression,” meaning patients will feel “off,” but it doesn’t stop them from their day-to-day activities.
Symptoms can range from sadness to problems sleeping.
With a diagnosis of dysthymia, most professionals suggest talking to a therapist before trying medication.
Postpartum Depression
Here’s a statistic you might find shocking:
85% of new mothers feel “down” or “blue” after having their baby. Around 16% of those new mothers are diagnosed with postpartum depression.
Much like other kinds of depression, postpartum depression has the same symptoms: sadness, anxiety, tiredness, etc.
With this kind of disorder, mothers might feel an extreme disconnection from their child or fear of harming the baby. This depression typically develops in the first year after giving birth.
Seasonal Affective Disorder
As you can probably figure out from the name, SAD impacts people during the winter months.
Lack of sunlight is primarily to blame for SAD, making people more irritable, tired, and anxious during winter.
Psychotic Depression
While some depressive diagnoses might require little treatment or may pass with time, others like psychotic depression require more attention.
This kind of depression is characterized by bouts of psychosis, which involves hearing sounds or seeing sights that aren’t there, or having delusions.
Psychotic depression can create serious problems if not managed correctly.
Bipolar Disorder
Everyone has heard of bipolar disorder, but few people understand what it actually is.
One of the most stigmatized types of depression, bipolar disorder, occurs when a patient suffers from drastic lows and then extreme highs.
Bipolar disorder is also known as manic-depressive because the moods fluctuate between mania and depression.
Mania is classified as having more excitement than usual, high energy, racing thoughts, and excessive confidence.
Like the other types of depression on the list, bipolar disorder can be treated with medication and therapy.
Situational Depression
Also called adjustment disorder, situational depression is caused by a big life-changing event or a stretch of high stress.
This is one of the most common types of depression because everyone experiences times in their lives that are very stressful.
Usually, situational depression doesn’t need medication, but it can be treated with a short-term prescription if your doctor sees the need.
With a general idea of the most common types of depression, let’s review which life insurance companies provide the most beneficial coverage for clients with mental health issues.
No-Exam Life Insurance With Depression
Maybe you don’t want to go through all the hassle of a traditional policy.
If so, then you’re the ideal candidate for a no-exam life insurance plan.
Just about every company on the market sells a version of life insurance without the health exam portion.
The company will still look at your medical records and prescription history, and you’ll still need to complete the health questionnaire.
Every carry puts a lower limit on the amount of life insurance you can buy with a no-exam policy as well.
If you’re considering buying a no-exam option, you need to decide what’s more important to you: a lower premium or convenience.
Do your research, compare rates, and see how your depression will impact your premiums, with and without an exam.
Life Insurance Rates With Depression
Here’s some good news: people with depression can still get Preferred or Preferred Plus rates!
During the series of health questions most insurers require, you’ll be asked about your depression diagnosis, the severity, the timeframe, and how it was or is treated.
If it’s been several years since you were treated for depression and you no longer take medication, then it won’t jack your rates up.
As long as you’re managing your depression carefully, you can end up in the best possible class.
The most common rate class is Standard.
Having depression does put a red mark on your application.
If you have any other health problems or other red marks, then you’re probably going to be put down a peg when it comes to your rate class.
Standard rates are not the lowest, but they are still extremely affordable with most companies. Here’s a look at some sample 20-year rates for $500,000 with a Standard rating class:
| Age | Sex | Non-Smoker | Smoker |
|---|---|---|---|
| 25 | Female | $24.17 | $63.44 |
| Male | $31.23 | $82.58 | |
| 35 | Female | $30.67 | $88.53 |
| Male | $35.03 | $108.77 | |
| 45 | Female | $60.88 | $192.39 |
| Male | $77.27 | $259.88 | |
| 55 | Female | $134.34 | $424.18 |
| Male | $192.88 | $605.46 |
If you’re in exceedingly poor health, there is always a chance you’ll get sub-standard rates.
So if you have depression or anxiety paired with other major health complications, the carrier might be more wary of awarding your coverage.
Does Seeing a Psychiatrist Affect Life Insurance?
Seeing a psychiatrist for treatment of a mental health condition, such as depression or anxiety, can have an impact on life insurance.
Just like other pre-existing medical conditions, the severity of the condition and how well it is managed will be taken into consideration when determining policy terms and pricing.
Life insurance companies may require additional information and may charge higher premiums for applicants who have seen a psychiatrist for treatment of a mental health condition.
However, it’s not guaranteed that you will be denied coverage if you have seen a psychiatrist, but it can make the process more difficult.
It’s always best to disclose any relevant information regarding your mental health and treatment to the insurance company to help them make an informed decision.
Benefits of Having Life Insurance With Depression
Living with depression presents its unique challenges, but having life insurance can offer essential benefits that provide peace of mind for individuals and their families. Here’s a closer look at how life insurance can be particularly advantageous when you’re managing depression:
Financial Security for Loved Ones
Life insurance provides a financial safety net for your loved ones, ensuring they have the means to cover expenses, debts, and ongoing living costs if you were to pass away.
Debt Management
Life insurance can help manage and alleviate debts, including mortgages, personal loans, or credit card balances. This prevents your loved ones from inheriting financial burdens, reducing their stress during a difficult time.
Income Replacement
If you’re the primary provider for your family, life insurance can replace your income, allowing your family to maintain their quality of life and cover essential expenses.
Bottom Line on Life Insurance With Depression
Just as people are different, each depression and anxiety diagnosis is different. Some are more severe than others, some need prescription treatments, and others need therapy to heal.
Some complications are long-lasting, while others may be a short chapter in your history.
When it comes to applying for life insurance with depression, there is no “ultimate guide.”
But if you’re diagnosed with depression or you’ve suffered from anxiety in the past, take heart knowing there are policies on the market you can afford.
Ease your mind, ease your insurance shopping process, and pick up a great life insurance policy today.
