Does Anxiety Affect Life Insurance? Complete 2025 Guide + YouTube Video
Anxiety is a very common feeling that virtually all people experience from time to time. Unfortunately, for
people diagnosed with anxiety, it can be a serious experience that can directly affect their way of life.
Applying for life insurance for people with anxiety is now a simple process. The thought of medical exams, policy terminology and decision-making for the applicants is now mostly handled by the insurance agents which alleviates stress for the applicant.
With the help of an experienced agent helping you every step of the way, the application process will be simple.
But here’s the good news: buying life insurance with anxiety is not only possible, but often simpler than you may think.
This guide is designed to provide clarity, practical tips, and reassurance, empowering you to make informed decisions to protect your loved ones financially.
Table of Contents
Frequently Asked Questions
This FAQ section is intended to help you feel confident about applying for life insurance. By familiarizing yourself with the information provided, you’ll gain a clearer understanding of the application process:
1. Can I Get Life Insurance with Anxiety?
Yes, individuals with mental health conditions are still eligible for insurance coverage. However, the terms and premiums may vary depending on the severity of your condition and other factors.
It is important to discuss your situation with an experienced insurance agent to find the right policy for you.
2. Does Anxiety Affect Life Insurance Rates?
In most cases, yes. Insurance companies consider several factors when determining premium rates, including mental health history. However, as awareness around mental health grows, some insurers are working towards more affordable and inclusive policies for individuals with pre-existing conditions.
3. Can I Be Denied Life Insurance Due to Anxiety?
Yes, you can be denied life insurance due to anxiety, but it is very rare. An applicant’s anxiety would have to be so out of control that anxiety medication would not keep the condition controlled.
Keep in mind that every insurance carrier has their own underwriting criteria. Insurers will determine who is approved and who would have their application declined.
We use a lot of the liberal life insurance companies that are anxiety-friendly and we very rarely have anyone declined. Most of our applicants are approved with very affordable rates.
4. Have You Ever Considered or Attempted Suicide?
If you have ever experienced suicidal thoughts or have attempted to commit suicide in the past, your condition will be reflected as severe. Your application will either be approved with substandard rates or most likely declined. In a case like this, your only logical option mat before applying for a guaranteed issue life insurance policy.
If your anxiety condition has placed you on disability for a period of a week or more, your condition will again be considered severe and headed for a substandard health classification or possibly even a decline.
5. Have You Ever Been Hospitalized Due to Your Condition?
If the date of service for your hospitalization as an in-patient was more than 10 years ago, you may be able to be approved with preferred rates as long as you don’t have any additional medical conditions. Keep in mind that any thoughts of suicide or attempts will likely trigger a decline in your application.
If your hospital stay was less than 10 years ago with no history of suicidal thoughts, you may be approved at standard rates.
6. Does Taking Medications Affect Life Insurance?
Taking medication for your anxiety condition is normally not a problem. A number of life insurance companies will offer preferred rates to applicants who take medication, but your condition must be well controlled.
Preferred rates can be offered if you take mild medication from your family physician, but not some of the more potent medications usually prescribed by a psychiatrist for more severe anxiety patients. Some life insurance companies will not approve preferred rates for applicants who are prescribed more than one medication.
Some companies, such as Prudential, Hohn Hancock and AIG will offer preferred rate classes to applicants as long as they are in very good health.
7. Are You Seeing a Psychiatrist?
In many cases, anxiety patients who are treated by a psychiatrist may not qualify for coverage with some insurers, but this is not true in all cases. We always run a pre-screen to determine what your options are before you apply. This eliminates the possibility of any surprises when you apply.
8. When Were You First Diagnosed?
All life insurance companies appreciate a medical condition that has been stable for a long period of time. If you have a lot of variation in your treatment and in the use of prescription medication, your health classification will place you in a higher risk class along with higher rates.
Health conditions that are kept stable will be the recipe to getting the best rates possible.
9. How Much Does Life Insurance Cost for People With Anxiety?
There are many variables to take into consideration when attempting to put a cost on life insurance for applicants with anxiety. Only life insurance underwriters can determine the exact premium and this is after the complete application process has been completed.
We can give you a health assessment which is just a series of basic questions to give you a close projection of the cost over the phone. Scroll down and you will find a mental illness questionnaire that will help us determine your premiums. The only way to really know what your premiums will be is to simply apply.
10. Can My Application Be Declined Due to My Condition?
Yes, you can be denied life insurance because of your anxiety, but it is very rare. Most people apply and find there is very little additional cost to their policy because of their mental illness. We use the most liberal, anxiety-friendly life insurance companies to have our applicants apply with.
How to Apply for Life Insurance with Anxiety in 2025: YouTube Video
What Is the Best Type of Life Insurance to Apply for?
When it comes to finding the best type of life insurance for someone with a mental health condition, it ultimately depends on their specific situation. Different types of life insurance policies may offer different benefits and coverage options, so it’s important to carefully consider your needs before making a decision.
The Answer is: Term Life Insurance
Without question, term life insurance is typically the most affordable option for those looking for coverage. It provides protection for a set period of time, for 10-40 years, and pays out a death benefit if the insured passes away during that term.
This could be a good option for individuals who may need coverage while they are still paying off debts or have dependents who rely on their income. However, term life insurance does not accumulate cash value and the premiums often increase over time.
Some additional considerations when it comes to term life insurance include:
Age and Health:
The younger and healthier you are, the lower your premiums will be. It’s important to get coverage while you’re young and in good health to lock in lower rates for a longer period of time.
Coverage Amount:
When deciding on a coverage amount, consider any outstanding debts or financial obligations you want covered, as well as future expenses such as college tuition for children.
Term Length:
Choosing the right term length is crucial. You want to make sure the policy will cover your needs during the specified period of time. Consider the ages of your dependents and how long they will need support, as well as any potential changes in your financial situation.
Conversion Options:
Many term life insurance policies offer conversion options, allowing you to convert to a permanent policy at a later date without having to go through another medical exam. This can be beneficial if you develop health issues that may make it difficult to obtain coverage in the future.
Riders:
Some term life insurance policies offer additional riders that can provide extra coverage for specific needs, such as critical illness or disability. These riders may come with an additional cost but can provide valuable protection.
How to Apply for Coverage
Connect with an Independent Agent:
Find an experienced independent agent such as ourselves and get professional help at no cost or obligation. Your agent will do 90% of the legwork for you. Trying to research life insurance products totally on your own will quickly put you in a state of confusion.
Life insurance is one of the most simple types of insurance, but without the help of an agent, it can quickly become a headache when it does not have to be.
Assess Your Needs:
Start by determining how much coverage you need and for how long. Consider factors like your income, debts, and the financial needs of your dependents.
Research Providers:
Look for life insurance companies experienced in working with individuals with anxiety or other mental health conditions. Check customer reviews and compare policy options to find the right fit for you.
Gather Relevant Information:
Prepare documents and details such as your medical history, prescription records, and any treatments related to anxiety. Being upfront about your condition can help speed up the process.
Complete the Application:
Fill out the insurer’s application form honestly and accurately. This typically includes sharing personal details, health history, and lifestyle information.
Undergo a Medical Exam (if required):
Some policies require a medical exam to assess your overall health. Be prepared for simple tests like blood work and a review of your vitals.
Waiting for Underwriting:
Once you’ve submitted your application and completed any required steps, the insurance company will assess your risk level and determine your premium rates.
Accept or Decline the Policy Offer:
After receiving an offer, carefully review the policy terms and costs. If it meets your needs, you can finalize the agreement and begin your coverage.
If you are not happy with the premium, you can decline the policy and your agent will check with other companies he can submit your application to.
By breaking the process into manageable steps, applying for life insurance while managing anxiety can feel less daunting and more achievable.
What Are the Best Life Insurance Companies?
Many top-rated life insurance providers have a deep understanding of anxiety and the impact it can have on individuals. Some companies have even tailored their policies to accommodate those with anxiety. Here are some of the best life insurance companies for people with anxiety:
Prudential:
With an A+ rating from AM Best, Prudential is known for its comprehensive coverage options and flexible underwriting guidelines. The company also offers a policy called “PruLife Return of Premium Term,” which allows policyholders to receive a full refund of their premiums if they outlive the term of their policy.
New York Life:
The company has been in business for over 175 years and has received high ratings from the major rating agencies. They offer a “Lifetime Income Annuity” option for policyholders who want to ensure a steady stream of income during retirement.
Mutual of Omaha:
Known for its exceptional customer service, Mutual of Omaha offers various coverage options for individuals with anxiety. They also have a “Living Needs Benefit,” which allows policyholders to access their death benefit while still alive in the event of a terminal or chronic illness.
MassMutual:
MassMutual has been in business since 1851 and has consistently received high ratings from major rating agencies. They offer a variety of policies, including whole life, term life, and universal life insurance.
Northwestern Mutual:
With over 160 years in the industry, Northwestern Mutual is known for their comprehensive financial planning services. They offer whole life, term life, and universal life insurance policies.
Transamerica:
Transamerica has been a leading provider of life insurance, retirement and investment solutions since 1904. They offer term life, whole life, universal life, and indexed universal life policies.
Each of these companies has its own strengths and unique offerings that cater to different needs and preferences.
It’s important to note that the cost of life insurance can vary widely between companies and individuals. Factors such as age, health status, and lifestyle habits can all play a role in determining premiums.
Key Benefits of Coverage
Financial Security:
Provides peace of mind by ensuring financial stability for you and your loved ones in times of need or unexpected events.
Access to Resources:
Many policies include access to mental health resources, counseling, and support services to help improve overall well-being.
Customizable Plans:
Coverage options can often be tailored to meet individual needs, allowing flexibility in choosing what works best for you.
Affordable Premiums:
Many providers offer a range of plans at different price points, making it possible to find coverage that fits your budget.
Comprehensive Support:
Includes benefits for a variety of situations, from medical emergencies to mental health challenges, ensuring well-rounded protection.
Long-Term Protection:
Offers security for the future by helping to manage risks and plan effectively for unforeseen circumstances.
Choosing the Best Life Insurance for Anxiety
Selecting a policy that matches your needs is essential. Here’s how to simplify the decision-making process:
Know Your Coverage Needs:
Calculate the amount of coverage required to support your loved ones financially. Consider debt, education expenses, and income replacement.
Focus on Term Insurance:
Term life insurance is often the most affordable option and covers a specific period, such as 10, 20, 30 or 40 years.
Explore Guaranteed Issue Policies:
If you’re worried about rejection due to anxiety, these no-medical-exam policies may provide coverage without the underwriting hassles.
Ask Questions:
Work with your agent to clarify any confusing terms or exclusions. Ensure you fully understand the policy details before finalizing.
Look for Flexible Insurers:
Some companies are more accommodating toward anxiety. Prudential, Legal & General America, and Transamerica are known for offering favorable policies for those with mental health conditions.
Mental Illness Questionnaire
If you would like us to provide you with an accurate rate quote, please complete this mental illness health questionnaire.
Rest assured that your information is secure and confidential.
You can either call it in to us, email it or fax it back to us and we will be able to provide you with an accurate projection of what your rates will be if you were to apply.
Our Contact Us page contains our email address and fax number. Don’t hesitate to let us know if you have any questions. We are available seven days a week!
Need Assistance? We’re Always Here to Help!
Buying life insurance for someone with anxiety may seem a little challenging, but with the right preparation and support from your agent, it’s actually very simple. Take it one step at a time, use the tools and advice outlined here, and lean on professionals and resources when needed.
Remember, you’re not alone, and your efforts will provide priceless financial protection for your family’s future.
Are you ready to take control of your peace of mind? Call our agency at 708-334-6226 today. With 29 years of experience, we’re here to guide individuals like you toward the best coverage for their unique needs.
All the best
Jack Venturi
