Can I get Life Insurance if I have Mental Illness
Having a mental disorder doesn’t necessarily mean that you will be excluded from buying insurance it just might make it a bit more challenging to get approved.
As more than 20% of Canadians will be affected by a mental illness in their lifetime, Canadian insurers are being forced to reconsider the options and underwriting offered to these higher risk applicants.
A reputable broker with experience and some knowledge of mental illness can help to ensure you get the proper life insurance products and coverage. The difference in underwriting from one life insurance company to the next can be staggering so it is crucial to have your broker help out with general inquiries and trial applications before you commit to an insurer and application.
The underwriting for mental illnesses usually considers whether the mental illness is mild, moderate or severe according to their own definitions and risk analysis and how it is being managed by the applicant. In most cases, it will require a physicians or psychiatrist report but a life insurance broker can also help quicken the underwriting process by ensuring that the applicant provides all the necessary details in the insurance application.
Depending on the specific illness and situation a broker will help you decide whether to apply for traditional life insurance or non medical insurance.
Non Medical Insurance for Those who have Mental Illness
An example of a non medical insurance product is Assumption Life’s Golden Protection Plan. The rates on the Golden Protection plan were recently lowered and aside from a question on recent hospitalization, there are no questions about mental illness.
Good advice to those seeking insurance with a mental illness is to use this or another non medical plan as your worst case scenario and then apply to another carrier to see if you can get a better rate.
If you would like to discuss your particular situation in more detail, please call Jack Bendahan at 905-761-9986 or 416-995-8705.
