Life insurance for people with anxiety

Can I get life insurance if I have anxiety?

Most insurers will cover you for life insurance even if you have anxiety. However, there are some companies that may deny coverage.
Insurers will determine your acceptance, rates or denial based on your medical history and the risk associated with developing drug or alcohol abuse.

If you’re currently on medication or attending therapy or counseling sessions, these are positive signs to address with your insurer to help you get approved, although you may pay higher rates. But be sure to let your insurer know which medications you’re taking and who prescribed them.

How does anxiety affect life insurance?

Anxiety affects life insurance by either ruling out certain companies, or by giving you higher rates than you would have without anxiety.

Since there are many levels of anxiety, not all insurers evaluate anxiety in the same way. Insurance companies look at how anxiety affects your life on a day-to-day basis, particularly with medication.

Severe anxiety can also have an impact on your ability to drive a car. These factors can make some insurers hesitant to offer life insurance to people struggling with anxiety, while others might offer it to you at higher rates.

What’s the best life insurance for people with anxiety?

Depending on your level of anxiety, you have a couple suitable options to explore:

• Term life insurance. A term life insurance policy is your most affordable option and lasts 10 to 30 years with fixed premiums but no cash value component. Term life often requires little to no underwriting for mild anxiety. However, if you have severe anxiety, you may be required to pass a medical exam. Searching for a company with relaxed underwriting guidelines — like Legal & General — may help with your approval.
• Guaranteed issue life insurance. This can be a term or permanent policy and requires no medical exam and typically no health questionnaire. Since it’s guaranteed life insurance, the premiums are often high and the death benefit amount is lower than a standard term policy.

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How to buy life insurance if you have anxiety

In order to find a company that’s okay with anxiety, you’ll probably want to look online for life insurance companies that allow pre-existing conditions, or go through an independent insurance agent to give you multiple options.

To give yourself the best chance possible of getting approved for life insurance, follow these steps:

• Be honest. Be up front and honest with the insurance company. Include the full extent and history of your condition, medication you’ve taken and are currently taking, and how your anxiety affects your ability to carry out daily activities.
• Demonstrate action. If you’re currently in counseling or therapy for your anxiety, have had it in the past, or are practicing another activity to help mitigate and control your anxiety, tell this to the insurance company.
• Choose an accepting insurer. Do some research on life insurance companies or work with a broker that can help you find companies who allow pre-existing conditions and start there. You can save time and effort by avoiding insurers with strict guidelines.

Reasons to consider life insurance if you have anxiety

If you have dependents who rely on your income, life insurance can protect their ability to stay afloat if you die.

Loans and debt

If you pass away prematurely and have debt such as a mortgage, student loans, credit cards or car loans, these debts are passed to your spouse or family. Having life insurance to cover debts removes an otherwise large burden on your loved ones.

Lost income

A rule of thumb is to have your life insurance policy’s death benefit be 5x to 10x your annual income, though this should only serve as a starting point since it doesn’t factor in your total debt. Having life insurance as income replacement — even if it’s only for one year — can allow your loved ones enough time to figure out how to replace your income in the long term.

Lower rates

Your life insurance rates increase as you age. Even with anxiety, your rates will also likely only go up over time. It’s best to buy a policy while you’re young to lock in the best possible rate.

Remove stress

If you don’t have debt or don’t need to worry about replacing lost income, it can still be beneficial to carry some life insurance. Having protection against unforeseen medical expenses and end-of-life fees — like burial costs — can remove the worry of how your loved ones will cover those expenses.

What happens if I lie about my condition?

While it may be tempting to lie about or try to hide your medical history, this can put your policy in jeopardy.

If you pass away within the first two years of starting your policy — called the contestability period — your insurer has the right to investigate your death for any misrepresentations during the application process. If you failed to disclose your diagnosis, your insurer can deny your beneficiaries your death benefit payout.

Even after the first two years, if your insurance company finds out that you purposefully failed to disclose your anxiety, your death benefit could be jeopardized.

Bottom line

Anxiety might prevent you from buying life insurance with some companies, but there are still plenty that will offer you coverage. Be transparent and honest about your condition and any medication you’re taking, even if it costs you higher rates.

Review all your options by comparing different life insurance companies to find a policy that’s right for you.

Common questions about life insurance for anxiety

• What's included in the life insurance medical exam?

  It depends on your insurer and how much coverage you need, higher benefit amounts will involve more medical tests. At the very least, you can expect a health background questionnaire with a height and weight measurement, possibly along with a urine test and blood work.

• What type of anxiety medications are allowed?

  Each insurer will have slightly different guidelines on medication. The more powerful the medication is, the more likely the insurer will have concerns and either raise your rates or deny you coverage. But failure to disclose your medication, even if you pass away from something completely unrelated, could result in the company denying your claim.