I applied for Term Life Insurace and told them that I had been in psychotherapy. They contacted my therapist who strongly advised me not to proceed. He claimed that other patients of his had been turned down and then had to wait two years to get any insurance. He was also concerned that once this information was in their database, it could negative implications forever. I did not have time to research the issue so I let theapplication lapse.

I now want to sort this out and get term life. Coincidentally, I stopped going to therapy a few months ago. Upong leaving, he advised me to wait two years and then apply for insurance. But the applications I have seen ask for the last five years.

As further background, while mytherapy was not very dramatic, he is of a school that can give a rather stark diagnoses. I can see how some of his patients may have gotten denied.

How do I proceed? Is there really any risk to applying for insurance now? And if it is better to wait, then how long should I wait?

Also, is there a database of shared information? Is this the same database as used by the health insurance companies?

Thanks,

Stan

Hi Stan,

Thank you for your question. Here are some points that I think will help you.

(1) People that are being treated - or who have been treated - for conditions needing psychotherapy can still get coverage. This includes people with depression and anxiety. You must work with a broker that specializes in these cases.

(2) Declinations or ratings on prior applications are considered when applying for coverage. However, a broker who is proficient in getting such cases underwritten can make sure they do not preclude approval.

(3) The database of the Medical Information Bureau is accessed when applications are underwritten. All carriers use it.

For more information, please read my indepth article on Depression and Suicide. Should you have additional questions, please do not hesitate to ask.

__________________
As an independent life insurance broker, I will gladly answer your consumer questions about life insurance. Please contact me by email (skobrin@stevenkobrin.com) or by toll-free telephone (1-866-633-1818). Thank you.

Stan,

Here is another helpful resource. These case studies will give you some idea of what rates are possible, given a diagnosis of anxiety and depression. Many of these folks were approved WHILE IN TREATMENT with psychotherapy and medication.

Preferred Non-smoker
Male, 34 years old
$250,000 coverage, 20-year term
Was declined 2 times, elsewhere

Better than Standard Non-smoker
Male, 36 years old
$750,000 coverage, 20-year term

Female, 32 years old
$1,000,000 coverage, 30-year term

Male, 35 years old
$1,000,000 20-year term
Was declined 2 times, elsewhere

Standard Non-smoker
Female, 48 years old
$750,000 coverage, 20-year term

Male, 50 years old
$200,000 coverage, 15-year term

Male, 33 years old
$1,000,000 coverage, 20-year term
Was declined elsewhere

Female, 37 years old
$100,000 coverage, 20-year term
Was declined, elsewhere

Male, 47 years old
$400,000 coverage, 10-year term
Was declined 6 times, elsewhere

__________________
As an independent life insurance broker, I will gladly answer your consumer questions about life insurance. Please contact me by email (skobrin@stevenkobrin.com) or by toll-free telephone (1-866-633-1818). Thank you.

That is great information. I did not know that people could be so easily declined solely because of therapy...doesn't seem right.

Thank you for the compliment.

Bear in mind that people can get declined because of serious issues related to therapy, not simply because they are in therapy. For example, if the doctor's notes indicate lack of compliance with medication or treatment, that could present a big underwriting obstacle. Similarly, if the notes reveal information that was not disclosed by the applicant, they could serve as well as grounds for declination.

Regards,
Steve

__________________
As an independent life insurance broker, I will gladly answer your consumer questions about life insurance. Please contact me by email (skobrin@stevenkobrin.com) or by toll-free telephone (1-866-633-1818). Thank you.