Depression and Life Insurance: Understanding the Risks

Mental health concerns, especially depression, are always of interest to both health and life insurance companies.

Areas of Interest for Life Insurance Companies

• When you apply for life insurance, expect the company to ask you about the following four things; your driving record, your family health history, your personal physical health, and your mental health.

Mortality Rates

• Insurance companies are especially interested when potential clients have a past diagnosis of depression, because mortality rates among individuals suffering from depression are significantly higher than those of healthy individuals. A study performed by the Netherlands Institute of Mental Health and Addiction revealed that the mortality rates are nearly double.

Reasons for Mortality Rates

• Although suicide rates play a part in these statistics, the bigger concern is actually the stress that depression causes on the body. This exposes depressed individuals to a wide variety of other health risks, including high blood pressure, heart problems, and decreased immune system function.

Health Conditions Comparable to Depression

• Unfortunately, a diagnosis of severe depression can put someone in the same insurance category as people with cancer, AIDS, heart disease, and diabetes.

Helpful Tips

• If you are looking for life insurance and have a diagnosis of depression, be honest with your provider. Supply them with any medical records they need. Keeping secrets is not a good way to develop trust with the insurance company. You may also want to consider waiting a few months or even years after a major mental health diagnosis, which will help lower your insurance rates.