How Can Depression Affect Your Life Insurance Applications?

Have you suffered from depression in your life? If yes, then you aren’t alone. Statistics show that, over 14 million American adults suffer from major depression. Depression affects all aspects of your life, and often makes it more difficult to get insurance coverage too.

Depression is far more than simply sadness. It’s characterized by feelings of extreme hopelessness, fatigue, and even physical pain. You may experience feelings of irritability, lack of appetite, and changes in sleep schedules. There are many different types of depression, with various levels of severity.

Here are the 5 major types of depression:

1. Major depressive disorder also known as clinical depression, is the most well-known type of depression. It varies from mild to more severe, but its symptoms generally interfere with all aspects of a person’s life, from work, to family, to home.
2. Postnatal depression is sometimes experience by women, after giving birth, and can last up to a year. Its causes are complex, but typically have to do with hormonal fluctuations after a pregnancy has ended.
3. Situational depression is the sort that is triggered by a certain event, such as being in large crowds, or going into a stressful work meeting. The situation that triggers the depression is different from person to person.
4. Dysthymic disorder is a milder form of depression compared to the major depressive disorder, and is sometimes mistakenly viewed as just ‘so-and-so’s personality’. It is, however, chronic (lasting at least two years) and can go on for a long period of time.
5. Psychotic depression can involve hallucinations, or seeing things that aren’t there. It can also involve delusions along with severe paranoia, and often leads to violent behaviour if left untreated, which is why most people consider this the most dangerous type.

Now that we understand how depression is defined and what types exist, let’s look at how it can affect your insurance application. Even if you suffer from depression, depending on the type and severity, traditional life insurance policies may still be possible.

How Does Depression Affect Your Life Insurance Application?

With very severe depression, you are much more likely to receive a “rated” life insurance policy, or sometimes, be declined altogether. Rated life insurance plans involve a surplus premium to offset the higher risk you present to the life insurance provider. These rates can vary from 50% to 300% above the standard rate.

If you don’t have any other serious health issues or a family history of depression-related conditions, you may be able to qualify for standard rates.

Are There Any Other Options?

If you have depression, another avenue you could try is the no-medical life insurance policy, available in two major variants:

• Guaranteed issue policies do not involve medical tests or health-related questions, but they do have higher limitations and can be more expensive. Most people are eligible to qualify for this type.

  Quick Pro Tip: The ideal insurance company will work with you to figure out what the best option for you is. You’ll be a team. Work with them until you are satisfied with the solution.

• Simplified issue policies have no medical exam, but will still ask a series of questions that are related to your health. Quite often, these questions won’t involve the topic of depression. Simplified issue policies generally also involve lower premiums.

  Quick Pro Tip: If you feel as though you may be declined for your application for traditional insurance, try looking at a simplified issue policy first. A good insurance company will prove helpful, working to get you whatever coverage is possible.

Consult a professional to help you determine the best life insurance option, based on the type of depression you suffer from and how it affects your life. Remember that you can also submit a preliminary inquiry beforehand, to find out what your chances are of being approved, before you go through the formal application process.

Don’t let depression discourage you from safeguarding your loved ones and their future. You don’t want to leave their financial security to chance, and there’s no reason why you should have to do so!