How much does life insurance cost if you’ve been diagnosed with a mental health condition?
No one wants to pay a penny more than they need to for their life insurance.
But life insurance premiums are based on a level of risk. If you have a mental health condition, you might find that your costs could be higher, depending on the severity of your condition.
If you’ve recently sought treatment for your condition or been hospitalised due to your mental health, you may notice that your prices are higher. But if you only suffer mild symptoms or you’ve benefited from a period of stability, then your premiums will be lower.
That’s because insurers base their costs on how likely they think they will have to pay a claim.
How do insurers work out their premiums?
There is no set price for life insurance because your premium depends on many different things.
As standard, you can expect an insurer to base their prices on many factors, including:
- General Health
- Smoking status
- Medical history – including dates of last treatment
We get worried when we hear people choosing the cheapest policy they can find on a site like Go Compare or Compare the Market. It’s great to get a quick visual of how much life insurance costs, but those comparisons might be inaccurate. Although pricing may be similar, the level of cover and number of exclusions could be very different.
You want to find a cheap life insurance plan with low monthly payments.
When money is tight, no one wants to pay more for insurance than they have to.
With our price protection promise for life insurance, we can guarantee you won’t find a better price anywhere else.
So, how much does life insurance with mental health cover cost?
Here’s a hypothetical example.
Mental health life insurance example cost #1
Sandra is 35 years old. She’s seeking a 25-year policy with a maximum payout of £250,000. She has two young children and wants to ensure their financial future is secure. For the last ten years, Sandra has experienced bouts of mild depression and anxiety, which she manages through daily medication and regular counselling sessions.
Sandra’s monthly premiums are £12.04
Over 25 years, Sandra would pay out £144 per year or a total of £3600 in exchange for a potential £250,000 payout for her children.
£12.04 per month | 25 years | £250k payout
Mental health life insurance example cost #2
Phil is 51 years old. He works in the construction industry and has been diagnosed with bipolar disorder. Phil used to smoke 20 cigarettes a day but has now switched to a vape. Phil was hospitalised for his condition two years ago. He is looking for a whole life policy valued at £150,000, ensuring his wife would be financially taken care of if something happened.
Phil’s monthly premiums are £215.68
Phil would pay out £2,588 per year for a potential £150,000 payout for his wife
£215.68 per month | £150k payout
Answering your questions about mental health insurance
We know you’ll have hundreds of questions about mental health insurance. Please feel free to submit any questions via our live chat. We’re happy to answer any question – and we want you to take the time to understand what your policy could cover.
If you’re searching for life insurance for pre-existing mental health conditions, you’ll probably have read pages of articles, and the information overload could be confusing.
People have been coming to The Insurance Surgery for years because they know we will be honest and open with them about their insurance needs. We never assume you know what different policies offer or what you’re looking for.
Instead, we take the time to talk you through the terms and conditions and check that you fully understand what you’re agreeing to.
To help you in your search, here are a few common questions we’re regularly asked about life insurance and mental health medical records.
No matter how complicated your mental health is or how recently you’ve been treated, we’re sure we’ll be able to find you cover. It’s just a matter of knowing which insurance companies to talk to and getting to know you and how your condition affects your daily life.
Your diagnosis and treatment may impact which insurers are available to you – but that’s not a problem for our experienced team. Our connections with firms across the entire market mean we can access policies unavailable elsewhere.
This will depend on what each policy says. We will always review any specific exceptions with you and tell you when they may or may not apply. We won’t just leave you to read through your policy’s terms and conditions on your own. Instead, we’ll work closely with you to make sure you understand how your health could affect how much you could get from your policy (or not).
All mental health insurance plans have one clause that is the same. All providers will place a 12-month exclusion on suicide. This means your policy would not pay out if your family needed to claim within the first year due to suicide.
This depends on the type of condition and the severity of your symptoms.
Most of the time, it will be easy to find a suitable plan if you have mild symptoms that are easily manageable. If your symptoms are a little more complicated, your insurance company may want to know more about how they impact your day-to-day life and your treatment options.
Yes, you can. With mental health insurance, we can make a policy that fits your needs – making sure that your family are never financially disadvantaged.
It’s often more cost-effective to get a joint policy that includes life insurance, critical illness and income protection into one easy payment. You could significantly boost your financial security for just a few extra pounds.
When you talk to our team, we’ll talk about your options and make sure you have a mental health plan that fits your budget and gives you the protection you need.
Some income protection plans may exclude payouts for specific issues relating to your mental health condition. If that’s the case, we’ll review your options so you know what you can do.
Can you be denied life insurance due to mental health?
All insurance companies will look at your most recent medical history when deciding whether or not to accept you for a policy. Different companies will have different levels of risk, and while some may worry that your condition makes you too much of a risk, another will be more than happy to provide you with cover.
By getting to know you, we’ll already have a good idea of the insurers that will offer you financial protection. We’ll do our best to match you to a firm with a great track record of providing suitable insurance for those affected by poor mental health.
What could happen if I don’t tell my life insurance company about my mental health?
We know you may be tempted to hide any mental health issues as you search for a policy.
But that could be the worst financial mistake you could make.
Being open and honest about your medical history (past and present) is essential – not just for making sure that you have the right policy in place but also because you want that reassurance that your plan will pay out when you need it to.
When it comes to mental health and life insurance, failing to disclose any relevant information could result in a number of different consequences.
- Your insurance company may not pay out. The whole reason you’re taking out a policy is because you want to protect your family. But you could be putting that at risk if you don’t tell your insurance provider the whole information.
- Your policy will be invalid. Your provider can withdraw your plan if they find out you gave them false information or left out important information. If that happens, you won’t get a refund for the premiums you’ve already paid. It could also make it hard for you to get other kinds of insurance in the future.
- You might have to pay a penalty fee. Your insurer has the right to request that you make up the difference between the rate you were paying and the rate you should have been charged if they had known about your condition from the outset.
- Your family could be sued. If your insurance company pays a claim and then discovers that you lied on the application, they could take your loved ones to court to recover the payout.
- You could be charged with insurance fraud. Failing to disclose relevant information when taking out a policy is a crime under the Fraud Act 2006.
With so much at stake, it’s essential that you are open and honest on your application.
We know that mental health can be hard to talk about.
You may feel that you’ve recovered and that a bout of poor mental health is in your past.
But we don’t want to jeopardise your family’s financial security.
And we know that you don’t either.
After all, that’s why you’re looking to take out a plan in the first place.
What are your options if you’ve been turned down for mental health insurance?
We want to start by reminding you that having a mental health diagnosis doesn’t mean that you won’t be able to take out life insurance.
We see our role as a matchmaker. We want to match you to the right policy and the right insurer.
If you’ve been declined with one insurer, it’s because that balance wasn’t right. It wasn’t the right plan or company to take care of you and your family.
If you’ve been turned down for life insurance before, you’re probably feeling a little down or frustrated.
But please don’t give up. We’re sure we can help you.
At The Insurance Surgery, we’ve helped a whopping 70% of people who had been turned down before find insurance.
We manage this by listening to you. We get to know who you are, and we will listen to you to understand more about your medical history.
As problem solvers, we’ll figure out why a company may not have accepted your application, and we’ll find ways to overcome those issues. Often, by talking directly with an underwriter, we can help them accurately assess your risk level and find you the policy you deserve.
All you’ve got to do is pick up the phone and talk to one of our life insurance experts.