Severe depression? Can I get life insurance?
If you have been unsuccessful when trying to arrange life cover because you’ve suffered from a history of mental health issues we hope this case study will give you some hope.
We were contacted by a client who had been struggling to arrange life insurance cover. He was 32 years old, married with two young children aged two and nine, and was renting a property.
He had been finding it hard to arrange life insurance directly because he had been suffering from severe depression for about four years. During, his depression he had attempted to take his own life, and as a result of this episode, had sought psychiatric help.
This helped him a great deal, and since then life has been much better for him – in fact, he no longer needs to take any anti-depressant medication.
We told him we wanted to try and help and began our research process.
Our Process and advice
At Future Proof, we have access to specialist insurance companies who don’t deal directly with the public. These companies offer more specialised policies, designed to provide cover where other major providers can’t.
Our research process involves us contacting many insurers to find out the best possible outcome for our clients. Which avoids any nasty shocks later on during the underwriting process.
Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk). Or, exclude a condition?
Might they decline the application? We want to avoid wasting time by making applications which may be declined.
We have up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK. Future Proof is committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs. You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.
Different insurers have different outlooks when it comes to severe depression
Some insurers said they would decline his application because he had attempted to take his own life. Some said that they would only offer him cover after a period of at least 5 years, and others would offer cover but with a very large loading to the premium (an additional amount charged on top of their ‘quoted’ premium).
We recommended the Insurer who said they would offer him the cover with a short-term loading on the premium for 2 years. After 2 years the additional loading would automatically drop off, and the cover would revert to a standard level premium.
We completed the application with our client, the Insurer requested a report from his GP and as anticipated, they issued their offer of cover which the client was happy to accept.
He now has a level term life or earlier terminal illness policy with a sum assured of £100,000, which will provide cover over a term of 39 years. The monthly premium payable is £33.10 for the first 2 years, but will then reduce to £12.10 per month thereafter.
Ideally, the client wanted more life cover including critical illness (which isn’t available to him at this stage). We agreed to review his situation again in 2 year’s time when we are more confident that we will be able to help him arrange a lot more cover for a similar premium to the one he is currently paying.
It pays to speak with an expert about insurance if you have suffered from severe depression, we can save you time and money and disappointment.
All our case studies are based on actual client scenarios, many of which pre-date 2020. We are confident that the acceptance decision made by the insurers would still be offered, although it is likely that the rates will have changed. Your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.Call me back
Interested in related stories?
Take a look at our handy guides ‘What Cover is Right for me?’
Do you suffer from a medical condition and concerned you can’t secure Life Insurance? Please view our ‘Medical Guides’ for further information.
Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. All applications are subject to underwriting.
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