News & Views

Obtaining Life Insurance for clients with mental health issues

According to charity Mind, one in four of the UK population will be affected by some form of mental health condition in any one year.

Not only are mental health problems, unfortunately, very common in today’s society, there is also undoubtedly a stigma that surrounds this issue, and this inevitably has an impact when it comes to insurance applications made by people with a history of mental health issues.

The good news is that not every insurer thinks in the same way, and Moneysworth’s previous successes demonstrate that it is certainly possible to obtain affordable life insurance for clients who have experienced mental health difficulties. If you have been declined by one or more insurers because of your mental health history, then give Moneysworth a call today as we have frequently been successful in obtaining policies for clients who have been declined elsewhere.

Moneysworth’s highly skilled and experienced team are experts in assisting people with both mental and physical health conditions to obtain the cover that they need. 

Case studies – how we have been able to help previous clients

Recent examples of where we have been able to obtain cover for clients with mental health issues include:

31-year-old woman with a history of various mental health conditions:

• Had previously experienced depression and post-traumatic stress
• Had made attempts at self-harming
• She had, however, been largely free from symptoms of any mental health condition for the last five years
• Also had a high BMI, which was also a consideration when finding appropriate insurance for her
• She was offered cover by two insurers. For £174,425 of cover over 19 years, she accepted a premium of £17.69 per month. The other insurer quoted her £19.40 per month. 

26-year-old woman with a history of depression and other complications:

• First experienced depression around seven years earlier
• Had made attempts at self-harm as recently as three years prior to the application, via various overdoses
• Was under medical supervision for the condition until around 16 months prior to her application
• Still typically took anti-depressants during the winter months
• She eventually took out life cover for £25,000 over five years, at a cost of £13.67 per month
• Unfortunately, in this instance, it was not possible to find an insurer who would cover her for death related to her previous mental health issues, so the policy we recommended is one that pays out for death that is not related to a pre-existing medical condition
• This may, however, only need to be a temporary solution, as one insurer indicated they could re-consider were another application to be made in six months’ time

33-year-old woman who had experienced both OCD and depression:

• First diagnosed with depression at age 14
• Was free from depression at the time of the application, but was still taking medication for it at the time of the application
• Made a suicide attempt via an overdose four years prior to the application
• Was also diagnosed with Obsessive Compulsive Order in her 20s, and the condition still exists to some extent
• The policy she took out was for £100,000 of life cover over 30 years. The premium is fairly high for the first two years, at £51.12 per month, but then reduces to £19.83 per month for the remaining 28 years 

50-year-old man with a history of depression and anxiety:

• Had experienced both depression and anxiety in the previous five years
• There had been at least two episodes of mental illness, which led to him needing counselling and medication, and he was unable to work for a period of time
• He took out a policy for £100,000 over 20 years at a cost of £79.57 per month. This was a joint policy with his wife, and although the premium was fairly high, this was partially due to his wife’s medical history, which included an occurrence of breast cancer

These cases illustrate that it can still be possible to obtain life insurance where:

• Clients have had more than one episode of anxiety or depression
• Clients were still taking medication at the time of the application
• Clients had attempted suicide in the years prior to the application

Types of mental health conditions where we can assist

We can help you find the right insurance if you have experienced any of a number of mental health conditions, which include:

• Depression
• Anxiety
• Stress
• Panic attacks
• Obsessive Compulsive Disorder (OCD)
• Bipolar Disorder
• Post-Traumatic Stress Disorder (PTSD)
• Post-Natal Depression
• Schizophrenia

Our promise to you 

Moneysworth promise to be sensitive to your individual needs and we promise to treat you in a compassionate manner.

Our ground-breaking mental health partnership 

Standard exclusions restricting payouts for death by suicide in the first year are apparently not sufficient for many providers where there is evidence of what they see as significant mental health issues. Instead they often apply a heavy loading to the premium or refuse the application outright. This only increases the stigma that surrounds mental health in today’s society.

Also consider that, even when a mental health condition does exist, it is overwhelmingly likely that an individual’s death will be caused by a physical illness.

Although insurers are keen to point out that they offer about 80% of cases involving a mental health disclosure at standard premium rates , this provides little consolation to the other 20% that will be rated or declined.

Moneysworth are seeking to change the landscape for clients with mental health issues.  In partnership with a well-known insurer, we have a new Life Cover option that has been specifically designed for people who have had a significant mental health event in the last five years. This new cover option is typically available at a more affordable price, and allows individuals to obtain life cover for death by natural causes, while the exclusion for death by suicide remains in force for longer than the usual 12 months.

It is important to note, however, that we don’t automatically send all mental health cases to this insurer. We have a whole-of-market offering and we always seek the best insurer for your individual circumstances. 

Moneysworth’s highly skilled and experienced team are experts in assisting people with both mental and physical health conditions to obtain the cover that they need.