Depression and Life Insurance Coverage

Depression and life insurance coverage can be a tricky thing. If you suffer from depression, you may have difficulty securing a life insurance policy. If you are able to get a life insurance policy, you may pay more for it than someone who does not suffer from depression or incur fees for life insurance for mental welfare.

Concerns of the Insurance Company

Insurance companies make their decisions based on mitigating risk. When choosing who to insure and how much the policy will cost, insurance companies assess the level of risk that each policy holder poses. People who suffer from depression are considered to be riskier than people who do not suffer from mental health issues. Because they pose a higher risk to the insurance company, people who suffer from depression may face challenges when it comes to life insurance coverage.

When searching for a life insurance policy, you will need to give the insurance company a thorough overview of your health, both mental and physical. If you suffer from or have suffered from depression in the past, it may effect your potential life insurance policy. Those who suffer from depression have a higher mortality and are therefore riskier to an insurance company than someone who doesn't suffer from depression. People with depression are also more likely to commit suicide than someone who is not depressed.

People who suffer from depression are generally in poorer health than those who are not afflicted. Depression can effect one's autonomic regulation, neurological processes, immune system and cardiac health. Insurance companies are less likely to offer life insurance to people with depression because of these additional health concerns.

Getting Life Insurance

When someone with depression looks into getting a life insurance policy, the insurance company will make a judgement as to the degree of depression the potential policy holder suffers. This category can effect how much someone's policy costs or if they are even eligible for life insurance at all. If a person suffers from depression that is in reaction a trauma, postpartum depression or seasonal affective disorder, they're ability to obtain life insurance and the amount that they will pay for their policy should not be effected.

For those suffering from longer term depression, the insurance company will look at the type of depression you suffer from. If it is a mild depression, you would received preferred status and would probably receive coverage and rates similar to those paid by people without depression. For moderate depression, standard status is assigned. Those with standard status may pay more for their policy. For those suffering from severe depression, the insurance company would offer a policy on a case by case basis.

Suicide is more likely to be committed by someone who is depressed rather than someone who is not. Insurance companies do pay out death benefits to the beneficiaries of the policy holder in the event that the policy holder takes their own life. The policy holder needs to hold the life insurance policy for two years before the time of death in order for the beneficiaries to receive the death benefits from the life insurance policy.

Depression and life insurance coverage is an issue for those who suffer from depression and their dependents. Life insurance is vital to have if you have dependents. In the event of your death, you need to make sure your loved ones are taken care off. While depression may effect your eligibility or the cost of your life insurance policy, if you are someone who suffers from depression, you can get a life insurance policy.

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