The Anxiety & Depression Association of America estimates that 6.8 million adults in the United States suffer with generalized anxiety disorder. This means they are worried most days, and these feelings can creep into their personal, social and working life.
If you belong to this category, the prospect of purchasing life insurance may seem daunting. While an anxiety diagnosis can complicate the purchasing process, it does not preclude you from receiving coverage.
How life insurers view anxiety
From diabetes to depression, all health disorders are thought to provide some level of risk. An insurer’s task is to answer the question, “How risky are you to cover?”
During the life insurance underwriting process, businesses often inquire about your health and lifestyle in order to determine risk. They then use this information to assess your eligibility for coverage and establish your prices.
If you have generalized anxiety disorder, you should anticipate being asked about your diagnostic date, latest anxiety episode, prescriptions, and therapies.Â
You may be questioned whether you have any other medical conditions, have been hospitalized, or have had suicide thoughts or attempts. Finally, insurers may request medical documents to gain a more thorough picture of your diagnosis, just as they would for other health issues.
The questions may appear intrusive, but if you can demonstrate that your anxiety is under control, you will be in a position to receive the best possible coverage.
Landing in a life insurance rating class
Insurers finish up underwriting by assigning you to a “risk class.” Life insurance rating classes are divided into three primary categories:
- Preferred. This tier is allocated for the healthiest applicants, who provide the least risk to insurers.
- Standard. A normal rating is for candidates who are in generally good health but may have a medical or lifestyle condition, such as a dangerous employment, that prevents them from receiving the lowest rates.
- Table-rated. Applicants with the highest risk may earn this rating, which can increase premiums by 25% or more. Many businesses use numbers like 1, 2, and 3 to indicate different levels. Based on a Table 2 rating, a 40-year-old woman looking for a $500,000, 20-year term life policy could spend $91.44 per month for coverage, according to Quotacy, a life insurance agency. In comparison, a woman who falls into the Preferred Plus category could pay $24.02 for the same coverage.
What is the good news? Many people who suffer from anxiety can access the best risk classes. People with well-managed anxiety and no other health issues are generally eligible for preferred ratings.
It’s critical to compare possibilities from different insurance companies because each has its own underwriting standards — and some specialize in issuing coverage for people with certain health issues like anxiety.
An independent life insurance agent or broker can assist you sort through your possibilities. These professionals collaborate with various companies, making it easier to compare prices. Brokers work for you and can conduct informal inquiries with carriers on your behalf.
Boosting your application
People with anxiety can apply for the majority of life insurance policies. These include term life insurance, which lasts a specific number of years, and permanent life insurance, which often covers you for the rest of your life.
To speed up your application:
- Be prepared. Know the names, dosages, and frequency of any medications you’re using to treat anxiety. Keep your doctors’ names and contact information ready.
- Disclose current and past treatments. Inform your insurer that you are visiting a therapist or psychiatrist. The same goes for previous hospitalizations.
- Get ready for your medical exam. If you’re looking for a life insurance policy that involves a medical exam, attempt to schedule a morning appointment. Avoid drinking the night before and vigorous workouts, coffee, and nicotine in the morning, as they can raise test results. To achieve the best outcomes, eat a nutritious breakfast and drink plenty of water.
- Shop around. Some insurers are more accommodating than others when it comes to worry. Compare quotes from a few insurers to find the most affordable coverage.
Above all, be open with your insurer. Hiding your mental health history may cause the underwriting process to be delayed or result in your beneficiaries being rejected a payout when you die.
A broker who has experience obtaining life insurance for high-risk candidates can assist you in submitting an application that has the best possibility of being approved.
