Life Insurance for Bipolar Disorder

Physical health impacts what you pay for life insurance, but does mental health history affect your insurability and cost of life insurance?

It does. While finding life insurance for bipolar disorder is possible, you will likely pay a higher premium rate than someone without a mental illness. A very severe form of bipolar can even put a medically-underwritten policy beyond reach. 

In this post, we will look at how bipolar disorder impacts premium rates, life insurance options for people with bipolar, and how you can improve your chances of getting approved.

So, whether this is your first time searching for a life insurance policy or you are unable to qualify for a medically-underwritten policy, the information discussed in this post will help you secure the coverage you need and deserve.  

Key Takeaways: 

• A bipolar diagnosis does not automatically disqualify you from life insurance
• People with mild, well-controlled bipolar disorder can still qualify for affordable rates
• A severe type of bipolar disorder may limit your life insurance options to guarantee issue plans
• You should disclose bipolar disorder (and all other pre-existing conditions) on your application to your life insurance providers

What is Bipolar Disorder?

Bipolar disorder is a mental health disorder believed to be caused by an imbalance of brain chemicals, though the exact causes are unclear. This condition causes severe mood swings that include emotional lows (depression) and highs (hypomania or mania) that can last for days or even months.

Since bipolar disorder is fundamentally a mood issue, it can affect key areas of a person’s everyday lives, including relationships, work, hobbies, sleep, eating, physical activity, and alcohol use.

The good news is that bipolar disorder is treatable. With therapy, medication, and support, people with bipolar disorder can lead productive lives. The challenging part is getting a clinical diagnosis because several of its symptoms overlap with other mental health disorders.

Generally speaking, there are four types of bipolar disorder:

1. Bipolar 1: People with bipolar 1 experience at least one episode of mania (lasting for more than 7 days). 
2. Bipolar 2: You may get a bipolar 2 diagnosis if you have experienced one or more depressive episodes and hypomania symptoms that have lasted for four days or longer. 
3. Cyclothymia: Considered as a milder form of bipolar, cyclothymia involves moods swing between short periods of mild depression and hypomania.
4. Unspecified bipolar disorder: You may get diagnosed with unspecified bipolar disorder if you experience periods of depression or mania but your symptoms do not meet the criteria for other types of bipolar disorder. 

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Does bipolar disorder impact life insurance rates?

Yes, bipolar disorder much like other mental health disorders can impact your life insurance coverage and rate just like a physical illness. The severity of the impact depends on several factors, including the form of bipolar disorder you have, how long your condition has been stable, and how it is being treated.

Depending on your medical history, life insurance companies will categorize your bipolar into any of these three categories: mild, moderate, and severe. 

• People with mild bipolar can qualify for standard or sub-standard rates (up to 50% to 100% higher than the standard rate) . 
• People with moderate bipolar can expect a premium increase of up to 150%. However, if your condition is unstable, the insurer will likely turn down your application and ask you to reapply after a year or two.
• People with severe bipolar may have to pay up to 200% more than the standard rate. If you have ever been hospitalized for suicidal ideation or an attempt, you probably will not qualify for standard life insurance at all.   

Types of life insurance for individuals with bipolar disorder

If you have bipolar disorder, the severity of your condition determines what life insurance coverage and options will be available to you. Typically, people with mild, controlled bipolar disorder can buy any type of life insurance policy, though they will likely have to pay more than someone who doesn’t have this condition. However, those with sever bipolar disorder may only qualify for guaranteed issue life insurance.

Here are the life insurance options available to people with bipolar disorder. 

Traditional life insurance

If you have been diagnosed with a milder form of bipolar disorder and your condition is under control, you may qualify for traditional life insurance, like term life, whole life, and universal life. Traditional life insurance policies involve detailed medical underwriting, which includes a medical exam and a health questionnaire. In some instances, the insurer may also ask for an Attending Physician’s Statement (APS) to get a fuller picture of applicant’s medical history and current health. 

Term life insurance is the purest form of life insurance, since it only has a death benefit component. Term life insurance provides coverage for a limited period, like 10, 20, or 30 years. As your policy approaches the end of its term, you have the option of renewing the coverage. The renewal premium rate, however, is typically much higher than the initial rate. Many insurers also give policyholders the option to convert their term life policy to a permanent life plan. This feature can come handy should your life insurance needs change down the road. 

Term life insurance is usually the best option for people with financial obligations that have an end date. So, if you want life insurance to cover the years until your kids become complete college, you pay off the mortgage and other debts, or you become financially-independent, consider term life insurance. It is 10-15 times cheaper than permanent life insurance, on average. 

Whole life and universal life insurance are types of permanent insurance. Both of them combine lifelong coverage with a savings element. Along with a death benefit, these policies build cash value, which grows tax-deferred. The cash value grows at a fixed rate in the case of whole life and at a varied rate in the case of universal life. Whole life is more expensive than universal life, but it provides a few additional guarantees. 

Despite being much costlier than term life, permanent life insurance can be an option for people with unique needs. If you are someone who wants lifelong protection and an additional investment vehicle, buying a whole life or universal life plan can make a lot of sense. It is also a better choice for business owners and people with large, complex estate. 

Guaranteed Issue Life Insurance 

If you have a bipolar disorder that is more severe, your options may be limited to guaranteed issue plans. These life insurance doesn’t require you to undergo a medical exam or answer health questions, so you can get approval despite mental health concerns. But on the downside, the premiums are costlier and death benefits are smaller than traditional life insurance. In addition, guaranteed issue policies include a waiting period, usually two years. If you die of natural causes during the waiting period, the insurer will return the premiums until then plus interest but will not issue the death benefit. 

Group Life Insurance 

People with severe bipolar disorder who do not qualify for traditional life insurance may still be able to get coverage through group life insurance. Many Canadian employers offer group life insurance to their employees as part of the benefits package. Group life policies do not have medical requirements, but the death benefit is usually capped at one or two times the annual salary.

Can you be denied life insurance if you have bipolar disorder?

If your bipolar disorder is mild and well-controlled, you will likely face no problem in buying life insurance. In fact, you may even qualify for standard rates, especially if there are no underlying conditions. However, a severe form of bipolar or a suicide attempt may put medically-underwritten life insurance out of your reach.

Nonetheless, you can still get coverage. Consider applying for guaranteed issue insurance, which involves minimal medical underwriting and hence is easier to qualify for. 

Applying for life insurance with bipolar

If you are bipolar, life insurance companies will like to know your condition in as much detail as possible. Apart from the standard health and lifestyle related questions, the insurer will ask you a number of questions related to your condition.

• When was your bipolar diagnosed? 
• How does your condition affect your everyday life? 
• How severe is your bipolar disorder and what medications are you taking? 
• Have you ever been hospitalized or took time off work due to your condition? 
• Have you been in the hospital for suicide ideation or an attempt?

It may be very challenging to get life insurance with a very severe bipolar disorder or a history of suicide attempts. However, if your bipolar is under control with medication or treatment, you may still qualify for insurance and even secure an affordable rate. 

Improving your chances of getting approved

Here are some tips to improve your approval odds: 

• Apply for life insurance when you are in a stable phase. 
• Disclose the names, dosages, and frequency of all the medications you are taking as part of your treatment plan.
• Take your medication as prescribed by your doctor. If you are not following your doctor’s guidance on medication, the insurer might think your bipolar disorder is untreated, which could lead to higher premiums or even a policy denial.
• Disclose past hospitalizations for bipolar, if any. Most insurers will not write you a policy until 12 months have passed since your last hospitalization.

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Tips for finding affordable life insurance with bipolar disorder

When it comes to life insurance for bipolar patients, there are several things they can do to secure affordable premium rates. 

• Maintain an active lifestyle: A normal BMI, healthy diet, and active lifestyle can lead to lower insurance premiums, mental illness or not. 
• Quit smoking: Getting affordable insurance with bipolar is hard enough; being a smoker could almost make it impossible to secure a good rate. 
• Compare quotes: Your best chance of getting affordable insurance is to shop around to multiple insurance companies since premium rates vary wildly from one provider to the next. 
• Work with an independent agent: An experienced, independent agent can help you submit applications to insurance companies that are more lenient towards people with bipolar disorder.

Conclusion

Bipolar disorder does not automatically rule out your chances of securing an affordable, medically-underwritten insurance policy. If you have a mild form of bipolar and it is well controlled, you will have the same options for life insurance as someone who doesn’t have a mental illness and may even qualify for standard rates. A severe bipolar disorder, however, would lead to higher premiums, or worse, a denial. In that case, a guaranteed issue policy is your only option. 

If you are worried about how your bipolar disorder will affect your chances to secure a policy or receive affordable premiums, let Dundas Life help you. Our agent will take the time to understand your condition and recommend options tailor-made to your situation and needs. 

Frequently Asked Questions

Can I still qualify for life insurance if I have other conditions in my mental health history alongside bipolar disorder?

You may still qualify for traditional insurance if you have other mental health issues besides bipolar disorder. But even if that’s not the case, you can always buy a guaranteed issue policy. It has no medical requirements and is available to all applicants who are between the ages of 40 and 75 years. 

Will going to therapy or counseling for my bipolar disorder impact my application?

Participating in therapy or counseling is likely to be viewed positively during the underwriting process. However, it alone won’t make or break your chances of getting a policy. Life insurance companies look at several aspects of your bipolar disorder, like its severity, whether you have been hospitalized or taken time off work because of it, and your prescription history, when evaluating your insurability. 

Can I modify my life insurance policy in the future if my bipolar disorder improves?

You might be able to get a lower rate if your bipolar disorder has improved considerably since you purchased the policy. Some insurance companies allow for what is called a re-rating or reconsideration. However, before being considered for a re-rating, you will need to demonstrate that you have maintained the improvement for a certain period.  

Are there any specific medications for bipolar disorder that can impact my life insurance application?

Certain medications for bipolar disorder may impact the underwriting process. Nevertheless, you should provide accurate information regarding the medications you are taking on your application. Otherwise, you run the risk of invalidating your contract later on. 

Can I apply for life insurance if I am currently in a manic or depressive episode?

If you want to take out insurance and are currently in a manic phase, it would be better to wait until your condition is stable. 

What happens if I don’t disclose my mental health diagnosis?

When it comes to disclosing health issues on your insurance application, honesty is indeed the best policy. If you have bipolar disorder and don’t disclose it or downplay its severity, you run the risk of invalidating the insurance contract in the future. Insurance policies include a contestability clause, which is in force usually for the first two years. During this time, the insurer can terminate the contract if it finds out you lied or withheld key information at the time of applying. Worse, if you pass away during the contestability period, the insurer can deny the claim or decide to pay only a partial death benefit. 

Will my life insurance cover suicide?

Most life insurance policies include a suicide clause. This clause states that the insurer will not issue the death benefit if the insured commits suicide within two years of buying the policy. After this period, insurers typically treat suicide cases like any other death and will pay the full death benefit amount. The only exception is where life insurance contract explicitly mentions that it does not cover suicide. 

Life insurance policies often include certain exclusions — circumstances that prevent policy beneficiaries from collecting the death benefit. If your policy includes suicide in its exclusion list, the insurer won’t pay