Life Insurance and Mental Health Changes

Life insurance and mental health changes can be a scary topic to broach. Many may worry that if the state of their mental health charges, they may lose their life insurance policy. Some mental illnesses may even preclude them from even getting a life insurance policy in place. Understanding how life insurance works with regard to changes in mental health can save those that suffer from mental illness a lot of worry, even from temporary disability insurance.

Getting Life Insurance

Life insurance companies design their policies to protect not only the policy holder but also to protect the company itself. Because a person with mental illness is more likely than someone with out a history of mental illness to die, those with mental illnesses are considered to be a higher risk. In order to minimize the risk that the life insurance company takes on, they may charge a person with a history of mental illness more money in premiums for their policy. In some instances, a history of mental illness may cause someone to get denied for a life insurance policy.

There are varying degrees of mental illness that may or may not have an effect on someone insurability. Those who suffer from conditions such as Obsessive Compulsive Disorder or Attention Deficit Disorder will have no problems getting a life insurance policy and might not pay anymore money that someone who doesn't suffer. Someone with a more intense mental illness, such as severe depression or paranoid schizophrenia, may be unable to obtain a life insurance policy. Certain medications, such as lithium, are considered to be riskier and may preclude someone on them from getting insured.

Changes For the Insured

There is some good news for people who suffer from mental illness when it comes to their life insurance policy. Once someone has a life insurance policy, the insurance company can not change or cancel their policy during the term. If a life insurance policy's term is 10 years, a person's life insurance policy can not be canceled or altered if their mental health changes in during the 10 year term of their policy.

There is an additional option of a Guarantee of Insurability. This rider can be added to a life insurance policy. A Guarantee of Insurability will lock in the policy holder's eligibility at the end of their term. This guarantee ensures that a person will continue to be covered by their life insurance policy at the end of the term of the original policy, regardless of how their mental health may change. This Guarantee of Insurability may be an option for those with a history of mental illness in their family but haven't exhibited any symptoms themselves.

Another option for those with mental illness is to take advantage of a group life insurance plan. Because a group plan includes many people with various health conditions, a group plan can not exclude a member because a medical condition. If you have been denied on your own for life insurance because of your mental health, a group plan may be the answer to insuring yourself.

Those suffering from mental illness have many of the same concerns as someone who doesn't. Providing for your family and beneficiaries in the event of your death is the goal of any life insurance policy. If you have existing life insurance and mental health changes, you will remain covered and your beneficiaries will receive death benefits. Your insurance company can not change or cancel an existing life insurance policy if your mental health diagnosis changes.

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