Does Depression Affect Life Insurance? Explore Our Guide for 2025 + YouTube Video
There are several outstanding life insurance options available for individuals with depression, offering very affordable rates. If
you are planning on purchasing life insurance and suffer from depression, please don’t worry.
This guide will walk you through all your options and help you apply for premiums that will easily fit your budget.
The good news is that many life insurance companies have relaxed their underwriting concerning many mental health issues such as depression. This means it is now easier to apply and receive better rates than ever.
This guide will also help you better understand how depression impacts life insurance, the options available to you, and tips to find the right policy for your specific needs.
Keep reading because the best is yet to come.
Table of Contents
How Does Depression Affect Life Insurance Rates?
Yes, having depression can affect your life insurance rates, but how much it might impact them depends on several factors. Life insurance companies view depression as a health condition, and like any health condition, they assess the level of risk it poses.
Insurers generally consider the following when determining your rates and eligibility:
Severity of Your Condition:
Mild or situational depression is often viewed more favorably compared to moderate or severe depression.
Consistency of Your Treatment:
Following a steady treatment plan with stable medication or therapy records can demonstrate that your condition is well-managed.
History of Hospitalization or Suicide Attempts:
Recent hospitalizations or suicide attempts can make approval more difficult and may delay eligibility until 1–2 years have passed.
Lifestyle Factors:
Employment consistency, no substance abuse, and overall physical health will impact your profile.
Insurance companies assign applicants a health classification, which directly influences premium costs. Generally, the better your classification (based on how well-controlled your depression is and how it aligns with other health markers), the more affordable the policy.
How Will Health Classifications Impact the Cost of My Policy?
The health classification that you are assigned determines what your premiums will be. The better health class you are assigned, the lower your premiums will be.
For example, a 35-year-old non-smoking male applying for a 20-year term life insurance policy with a $500,000 death benefit could see rates like the following based on their classification:
- Preferred (Best Case): $21/month
- Standard: $40/month
- Rate Table 3 (Moderate Risk): $54/month
Take a moment to learn more about health classifications and how they directly affect your premiums. Properly managing your depression with medication, therapy, and a healthy lifestyle can help you qualify for better rates.
How to Apply for Life Insurance With a Medical Condition | YouTube Video
Can I Buy Life Insurance If I Have Depression?
The short answer is yes! Many people with depression can and do purchase life insurance. The key is finding the right insurer for your unique situation. Some insurers are more lenient and experienced in working with people who have mental health conditions.
What to Expect During the Application Process:
When you apply for life insurance, be prepared to answer questions such as:
- What type of depression do you have (mild, situational, or major)?
- When were you diagnosed?
- Are you taking any medication? If so, what type and how consistent was your treatment?
- Have you been hospitalized in relation to your mental health?
- Do you see a therapist or psychiatrist regularly?
Insurers will also review your medical records to verify the information you provide. While it’s tempting to omit certain details to get lower rates, being honest is crucial.
Misrepresenting your health can lead to higher premiums, policy cancellation, or denied claims for your beneficiaries. Be 100% honest when you go to apply.
Can I Get Life Insurance While Using Antidepressants?
The use of antidepressant medication is actually a favorable indicator for life insurance companies. They know that modern drugs for depression are very successful and can make all the difference in helping you. Using anti-depressants indicates you are working hard to manage your condition so you can live a normal life.
Depression life insurance eligibility is very good and application declines are not commonly seen. Using the correct company to apply with is the most important factor to getting the best approval.
Can I Be Denied Life Insurance Due to Depression?
You can be denied life insurance due to depression just like you can with any other medical condition. If your condition is severe enough and cannot be controlled with medication.
The most common reason for an application being declined is applying with the wrong life insurance company. The other reason is applying with an agent that does not have much experience insuring with medical conditions.
We submit applications to several companies at once and then wait to see which carrier comes back with the best offer. We also pre-screen our applicants by running a simple health assessment first to prevent declined applications later.
What Are the Best Life Insurance Companies for Depression?
Not all insurance companies treat mental health diagnoses the same way. Some are better equipped to offer competitive rates to individuals with depression. Here are a few recommended insurers based on years of research:
Prudential:
Best for those with moderate to severe depression, offering reasonable rates even for applicants with more than one mental health condition. The Prudential Life Insurance Company has always been very liberal towards applicants with health conditions.
Legal & General (Banner Life):
Ideal for mild or situational depression with no or one medication. Banner Life also offers very flexible underwriting for anxiety and other related conditions.
Pacific Life:
Known for leniency with applicants who have well-controlled depression.
Transamerica:
The Transamerica Insurance Company offers preferred rates for mild cases of depression with no psychiatric counseling or missed work history.
Working with an insurance broker who partners with multiple insurers, such as Transamerica, can help you find the best fit for your circumstances.
What Are My Life Insurance Options for Depression?
Depending on your health history and circumstances, some types of life insurance might be easier for you to qualify for than others.
Term Life Insurance:
This is the most common option and provides coverage for a set period (e.g., 10–30 years). Term life insurance is going to be the most affordable choice, especially for individuals with mild or well-controlled depression.
Whole Life Insurance:
Provides lifetime coverage and includes a cash value component that can grow over time. While it is more expensive than term life insurance, it’s a good option for those with long-term financial planning needs.
No-Medical-Exam Life Insurance
These types of policies skip the medical exam and offer a more streamlined application process, but the costs are typically higher and coverage options are limited.
Guaranteed Issue Life Insurance:
This is often a last-resort option for individuals with severe mental health conditions. It does not require medical exams, but coverage is minimal (usually capped at $25,000), and premiums are high. These policies are of referred to as senior life insurance and final expense life insurance.
Tips for Navigating the Application Process
Getting life insurance with depression may feel daunting, but here are some tips to help you find the best policy for your needs:
Working With a Broker:
An independent insurance agent, also known as a broker, has access to multiple insurers and can compare rates and policies on your behalf. Independent agents do not work for insurance companies; in reality, they work for you at no cost or obligation.
Maintain a Consistent Treatment Plan:
Insurers view applicants with steady medication and therapy schedules as lower risk than those with frequent changes in treatment.
Always Be Transparent with Your Agent:
Share all the required details about your diagnosis and treatment. Insurance companies will verify your medical records, so omissions could lead to complications later during the underwriting process.
Consider Temporary Alternatives:
If you’ve recently had a hospitalization or suicide attempt, you may need to wait before qualifying for traditional policies. While you wait, consider group life insurance through your employer or a guaranteed issue policy as short-term solutions.
Compare Types Policies:
Premiums can vary widely between insurers, even for applicants with similar health profiles. Don’t settle for the first offer.
How Much Does Life Insurance Cost If I Have Depression?
The cost of life insurance varies based on the severity of your depression, your age, gender, and other factors like overall health and smoking habits. To give you a sense of what to expect, here’s a sample breakdown for a 30-year-old non-smoking woman applying for a 20-year policy with a $500,000 payout:
- Mild Depression: Around $23/month
- Moderate Depression: $30–$40/month
- Severe Depression: $50+/month depending on treatment history
Rates are simply averages. By working with the right insurer or broker, you may find more affordable options. Feel free to contact us for life insurance quotes for depression over the phone 7 days a week.
Depression Life Insurance Questionnaire
If you would like us to provide you with an accurate rate quote, please complete this health questionnaire.
Rest assured that your information is secure and confidential.
When applying for life insurance with depression, you will need to complete a supplemental questionnaire. Insurers need all the specifics to help you get the best rates.
You can call us, email us, or fax us your information. We will be able to provide you with an accurate projection if you decide 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!
Take the Next Step Towards Protecting Your Family
Applying for life insurance with depression is not complicated at all. If your condition is controlled with medication, you will find that the application process is a snap.
Your family’s financial future is worth protecting.
If you’re ready to explore your options, call us today at 708-334-6226 for an instant depression life insurance quote. We can help you find coverage that fits your needs and budget.
One last note, thank you for taking the time to read this blog post!
All the best,
Jack Venturi
