Mental Health and Life Insurance Policies

Having a mental health condition calls for being weary of many things. But what you must keep in mind is the fact that mental health is not a destination but a journey.

Since 2001, the mental health and life insurance industries have been working together to develop adequate life insurance outcomes for people struggling with mental health disorders.

With that in mind, people with mental health conditions can also have their insurance coverage. However, every condition and country calls for its terms to make life insurance claims.

In Canada, the good news is that mental health conditions don’t slam the door on life insurance coverage, but the key to qualifying for a life insurance claim is honest disclosure of the severity of your conditions.

In this article, we’ll be going over something crucial but often overlooked — mental health and life insurance. So, without any further delay, let’s explore the different life insurance policies for people with mental health conditions.

Let’s get to it!

Do Mental Health Conditions Affect Life Insurance Coverage?

When you apply for life insurance coverage, your mental and physical health will be examined. So, as uncommon as it may sound, it is, in fact, totally normal, and the insurers are used to it.

You will be asked to fill out a questionnaire or submit a medical exam. Why, you may ask — it is because a series of factors like the severity of your mental health condition, how it impacts your income and lifestyle, ongoing symptoms, and other such stuff will determine whether you qualify for the life insurance policy or not and to what extent. 

However, certain medical conditions like anxiety will not have as many premiums as severe conditions like schizophrenia will have and they will affect the kind of coverage you get in your life insurance policy.

Keep in mind that the terms and conditions offered will vary based on the country and company offering the insurance. This is why it’s important to get quotations from various resources before choosing one.

Lying About Your Condition On Your Insurance Application: The Flipside

Withholding information or lying on your life insurance application is a NO-GO, and can lead to major consequences. 

Once you claim your condition, that information will be legally assessed. If found inaccurate or untrue, it can lead to consequences like the insurer cancelling your policy or refusing to pay your claim without refunding any of the premiums you’ve paid.

Hence, you do not lie regarding anything on your insurance application. To get the best out of it, you must keep it real.

Remember, “Disclosing your mental health shouldn’t be a barrier to getting the life insurance coverage you need. We believe Canadians with mental illness deserve fair access to life insurance products.” – The Canadian Life and Health Insurance Association

What Mental Conditions Are Considered By Life Insurance Companies?

Every individual is worthy of a life filled with fulfilment, and the same goes for individuals struggling with mental health conditions. Almost all the insurance companies are stepping up and considering people struggling with mental illnesses. Some of the most common conditions considered by these companies are:

  • Anxiety
  • Bipolar Disorders
  • Obsessive Compulsive Disorder
  • Eating Disorder
  • Schizophrenia 
  • Psychosis
  • Attention Deficit Hyperactivity Disorder
  • Borderline Personality Disorder

These are not just names on the list anymore or something to be shrugged away. Insurance companies these days fully consider individuals struggling with these conditions and work to give as much as fair outcomes as they can.

Does Ongoing Medical Treatment Affect Life Insurance?

The role of ongoing mental health treatment and the impact of medications also play its role and increase the odds of securing a life insurance policy. For instance, if you’re seeing a mental health professional or are under treatment with medications, the insurers may increase your coverage, and it also increases your chance of getting favourable terms.

What Are The Different Life Insurance Options For Mental Health Conditions?

It is said that your mental health struggles do not define your future. With that in mind, you should know that you are rightful enough to secure a future for your family and yourself. There are different life insurance policies for people struggling with mental health conditions. Some are better than others, and their eligibility, budget, and period vary.

  1. Term Life Insurance:

Term Life insurance is an insurance policy that lasts for a certain period, usually ranging from five to thirty years. This is especially suitable for younger people with less severe conditions than others.

  1. Permanent Life Insurance:

The term is pretty self-explanatory and is your ride and die. Permanent life insurance is an insurance policy that lasts your entire life as long as you keep paying the premiums. However, it is more expensive than other insurance.

  1.  Guaranteed Life Insurance: 

This is your guaranteed policy. It also requires no medical exam. However, it is the most expensive one out there.

  1. Group Life Insurance: 

This is the life insurance that is specifically for employees. If you are someone with mental health conditions and working in a company that offers insurance coverage, this policy is for you. It also requires no medical exam to qualify and lasts for as long as your association with the company.

Make Informed Decisions With McIver Insurance

Having a mental health condition does not exclude you from the normalcy of life. This is why the insurance sector is working to offer the best outcomes to every individual.

Having life insurance is a perfect shot at having peace of mind and a secure future and has many benefits. However, since the industry is ever-evolving, it is important to consult experts to ensure that you are not exploited.

At McIver Insurance Inc., we prioritise our customers first and are a renowned name in all of Halifax, for we believe that your future can be fearless if you secure your today.

With that in mind, waste no more time and give us a call at 1-902-220-3279 or email at [email protected] to get life insurance policies tailored to your needs.