Stress and Life Insurance: Understanding the Connection
Mental health can be a factor that affects life insurance, as insurers assess the risk of covering an individual based on various factors, including their overall health and medical history.
In the past, mental health conditions were often excluded from cover or resulted in higher premiums for life insurance. However, as awareness around mental health has increased, some insurance providers have adapted their policies to be more inclusive and understanding of mental health conditions.
Mental health can have an impact on life insurance, both in terms of eligibility and pricing. Here are some important things to keep in mind:
Disclosure: When applying for life insurance, you will typically be asked questions about your mental health history, including whether you have ever been diagnosed with a mental health condition or received treatment for one. It is important to answer these questions truthfully and fully, as failure to do so could result in the denial of a claim later on.
Underwriting: Life insurance companies will typically review your medical history and other factors to assess your risk of dying during the policy term. This risk assessment will factor in any mental health conditions you have disclosed. Depending on the severity of the condition and the treatment you have received, the underwriter may decide to either offer cover at a higher premium or decline your application altogether.
Cover: If you have a history of mental health conditions, it is possible that your policy will include an exclusion for death by suicide. This means that if you die by suicide during the policy term, the death benefit will not be paid out.
Riders: Some life insurance policies may offer additional riders that provide coverage specifically for mental health conditions. Aviva are currently leading the way with customers mental health. You can read about Aviva’s extra cover here.
It’s important to note that every life insurance company has its own underwriting guidelines and policies regarding mental health conditions, so it’s important to shop around and compare policies to find one that fits your needs. That’s why working with an Independent broker like Low Cost Life Cover who can help guide you through the process and find a policy that works for you.
Low Cost Life Cover is an independent broker with agencies with all the major insurners Zurich, Royal London Ireland, Irish Life, Aviva and New Ireland. It is our job to provide you with the best independent advice that is the most suitable for your needs. I would be happy to discuss your individual needs if you have any questions give me a call 01 6853818, I’m from Donegal I love to talk!