Life Insurance Underwriting Strategies for Applicants with Depression

Most individuals suffer from temporary depressed mood periodically.?Job loss, financial stress, children leaving home, divorce, and the illness or passing of a loved one represent just a few of the more common life events that can lead to temporary depression.?Most of these forms of situational depression resolve on their own and are of little consequence to life insurance underwriting.

Chronic forms of mild or moderate depression are often treated by a primary care physician who may prescribe one or more anti-depressants.?A significant percentage of the population experiences this form of depression at some point in their life.?Assuming the condition has been stable and well managed for many months or years, is not accompanied by self-medication via alcohol or drugs, and does not significantly interfere with the individual’s personal or professional life, it is of little consequence to life insurance underwriting. Preferred rates are common underwriting outcomes.

Some individuals experience recurrent bouts of major depression, bipolar disorder, or related disorder.?These can have a significant impact on the patient’s personal and professional well being.?These unfortunate individuals are much more difficult to treat and underwrite for life insurance, especially since suicidal thoughts, and sometimes attempts, are frequently documented in medical reports. ?Assessing these risks for insurance is challenging due to the wide range of experiences by the individual - and the subjective interpretation of the underwriter reviewing the medical records.?There are no objective measurements that can be used to classify these risks.?Evaluating the insurability of depression is an art, rather than a science.

Insurer Selection is Key:

Some life insurers focus on insuring preferred risks to provide the lowest possible premiums to a healthy population.?By screening applicants carefully, these companies are able to offer ultra-competitive super preferred pricing to a select - but limited - group of applicants.?Many of these insurers are able to offer preferred rates to applicants with temporary mild situational depression.

Individuals with more significant forms of depression will benefit from pursuing insurance coverage with highly rated insurers that specialize in underwriting medical impairments. These insurers are often able to offer coverage in situations where others prefer to pass or charge excessive premiums.

Preunderwriting Assessment:

Prospective insurance buyers who are willing to discuss their situation can help their financial advisor identify the most appropriate insurer in advance of an application by volunteering the following information:

• Date of birth:
• Gender:
• Current tobacco use (or use within past 3 years):
• Specific form of depression diagnosed (e.g., bipolar disorder):
• Other related diagnoses (e.g. anxiety, OCD, PTSD):
• Approximate date of initial diagnosis:
• Number of episodes or frequency since initial diagnosis:
• Currently in therapy?
• List prescription medications:
• Dates of transcranial magnetic stimulation (TMS):
• Dates of electroconvulsive therapy (ECT):
• Dates of invasive/surgical neuromodulation procedure:
• Other or additional forms of treatment (e.g. CBT):
• Describe treatment effectiveness:
• Documented suicide attempt past 2 years?
• Dates of hospitalizations due to depression:
• Current (or past) alcohol use pattern:
• Current (or past) drug use, including marijuana:
• Major driving violations past 5 years (e.g. DUI):
• Criminal record past 10 years:
• Evidence of other medical impairments / disease?
• Job status and how long in current job:
• Family status:
• Any other information that might be relevant to insurance underwriting:

If you wish to explore our industry's most competitive underwriting solutions, send me a message or give me a call and let's strategize re case design, insurer selection, and underwriting strategy.