Life Insurance is a way of protecting your loved ones financially in case something happens to you. But what if you have a mental health condition? Will it affect your ability to get cover, or the cost of your premiums? In this blog post, we will explore how Life Insurance and mental health are related, and what you need to know before applying for a policy.
Key Takeaways
- The cost of Life Insurance, eligibility, premiums, and claims can all be affected by mental health conditions.
- Life Insurance can have a positive impact on mental health in terms of motivation, self-esteem, and wellbeing. Having Life Insurance can make you feel more valued, responsible, and confident. It can also encourage you to take better care of yourself and seek help when needed. However, it can also have negative effects if you feel pressured, guilty, or hopeless about your situation.
- It’s important to understand how Life Insurance and mental health are related and to find the right cover to meet your needs. Double your level of cover for a similar price to single life policies offered by national UK life insurance providers.
1 in 6 people, or approximately 45.8 million adults, report experiencing symptoms for common mental health problems, like anxiety and depression, in any given week in England1. According to Mind, 1 in 4 people in England will experience a mental health problem of some kind every year and 6 out of 100 people will be diagnosed with generalised anxiety disorder every week2. Meanwhile, Mental Health UK highlights that over 8 million people are experiencing an anxiety disorder in the UK at any one time3.
If you have a mental health issue, Life Insurance is a way of protecting your loved ones financially in case something happens to you. Will having a metal health issue affect your ability to get cover, or the cost of your premiums? In this blog post, we will explore how Life Insurance and mental health are related, and what you need to know before applying for a policy.
Does mental health affect Life Insurance?
Life Insurance and mental health are related in several ways:
- Life Insurance can provide financial security and peace of mind for people with mental health conditions and their loved ones. It can help cover funeral costs, debts, mortgages, or living expenses in case of death. This can reduce stress and anxiety for people who worry about their family’s future.
- Life Insurance can also be affected by mental health conditions in terms of eligibility, premiums, and claims. Life insurers may ask about your mental health history, diagnosis, treatment, medication, or symptoms when you apply for a policy. Depending on your condition and its severity, they may charge you more, exclude your condition from the cover, or decline your application altogether. They may also require you to provide medical evidence or reports from your doctor or therapist. If you make a claim, they may investigate your mental health history and check if you disclosed it accurately when you applied.
- Life Insurance can have a positive impact on mental health in terms of motivation, self-esteem, and wellbeing. Having Life Insurance can make you feel more valued, responsible, and confident. It can also encourage you to take better care of yourself and seek help when needed. However, it can also have negative effects if you feel pressured, guilty, or hopeless about your situation.
What challenges might there be when applying for Life Insurance?
Applying for Life Insurance can be challenging for various reasons:
- You may not get the cover you need. Many insurers do not include pre-existing medical conditions, such as mental health problems, in their policies. They may also have limitations on what they will cover related to mental health.
- You may be seen as a ‘high risk’ customer. This means the insurer thinks they are more likely to pay out money for a claim. So, they may deny you cover or charge you more (the premium is the amount you pay for an insurance contract). This can happen even if you have recovered from a mental health problem that you had before.
- You may pay more if you are not working because of your mental health. Insurers may only give you two choices: ‘in work’ or ‘unemployed’, and you may find your premium is higher if you say you are unemployed.
- The questions an insurer asks might be too vague. For example, the insurer may only ask you one question about your mental health, such as ‘have you ever had a mental health problem?’. If you answer yes, they may then charge you more or refuse you cover.
- The process of applying can be hard. For example, if your mental health problem makes it difficult for you to read small print or fill out forms.
- The application process may feel distressing or invasive. Sometimes you might be asked personal or tough questions about your mental health, by staff who lack mental health training.
- Some insurers may increase prices if you tell them that you are taking medication or getting other treatments. This can be annoying if you feel that you’re being penalised for taking care of your mental health problem or that the insurer has a poor understanding of mental health.
Concluding, Life Insurance and mental health are closely connected in several ways. Life Insurance can offer financial protection and peace of mind for people with mental health conditions and their families, although it can also be affected by mental health conditions in terms of eligibility, premiums, and claims. It can have a positive impact on mental health in terms of motivation, self-esteem, and wellbeing, therefore this is why it’s important to understand how Life Insurance and mental health are related and to find the right level of cover to meet your needs.
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References
- https://www.priorygroup.com/mental-health/mental-health-statistics
- https://www.mind.org.uk/information-support/types-of-mental-health-problems/statistics-and-facts-about-mental-health/how-common-are-mental-health-problems
- https://mentalhealth-uk.org/help-and-information/conditions/anxiety-disorders/what-is-anxiety