Life Insurance and Depression: Background
Can You Get Life Insurance with Depression?
Does Life Insurance Cover Depression?
Does Depression Affect Life Insurance Rates, and How?
What Life Insurance Types Can You Get with Depression?
What is best Life Insurance for Depression?
Depression is a mental health illness that has long-term effects on both physical and mental wellness if left untreated. When looking for insurance, know that depression is considered a pre-condition. The extent of the illness determines the decision to be offered a standard policy, a rated policy, or if you are declined. If depression is a serious issue, no medical life insurance policies are an option.
Depression is characterized by a very depressed mood; loss of enjoyment of life; loss of pleasure from activities you normally enjoy; isolation and occasionally, slowness/sluggishness, fatigue, crying, withdrawal from family, social interactions and thoughts of suicide. COVID has dramatically increased the already high depression rates in Canada.
According to the Survey on COVID and Mental Health (SCMH), current statistics show that 25 per cent of Canadians 18 and older suffer from either depression, anxiety, or PTSD. These numbers have risen from 21 per cent in the fall of 2020. Statistics Canada’s 2012 Canadian Community Health Survey (CCHS) on Mental Health shows that younger people also experience depression; 5.4 per cent aged 15 and over were categorized with a mood disorder, and that number includes 4.7 per cent with major depression and 1.5 per cent with bipolar disorder.
Very often, people with a history of depression can get life insurance, but the insurance company will try to understand your current condition and the probability of if it will get worse.
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Yes, you can get life insurance with depression and, depending on seriousness of your condition, there are several options available to you. Numerous factors will determine which life insurance policy you can qualify for:
If you were taking time off work at the time of application, you might be denied life insurance and considered for it at a later time (for example, a year). If mild or moderate cases are identified within one year, you would be a good candidate for rated life insurance. If your last incidents are more than a year back or there was only a mild episode, you might get standard rates. When applying for life insurance, the underwriter is likely to reach out to your doctor for an APS – attending physician statement. This report provides insights to the insurer about your condition. The doctor provides it directly to the insurance company. If necessary, the insurance company may also ask for an additional questionnaire to be filled out and submitted with questions targeted to mental health and nervous disorders. | Expert tip from Leslie Gottlieb “When you are looking for life insurance and have dealt with depression in the past, it is really important to consider a few things. Insurance companies may have different policies and procedures for people in your situation. If you’ve been denied coverage before because of your depression, choosing a policy that does not require a medical exam could be a great option. To navigate this process and find the best policy for your unique situation, I highly recommend getting help from an experienced insurance broker.” |
Yes, you can get life insurance with depression and, depending on seriousness of your condition, there are several options available to you. Numerous factors will determine which life insurance policy you can qualify for:
If you were taking time off work at the time of application, you might be denied life insurance and considered for it at a later time (for example, a year).
If mild or moderate cases are identified within one year, you would be a good candidate for rated life insurance.
If your last incidents are more than a year back or there was only a mild episode, you might get standard rates.
When applying for life insurance, the underwriter is likely to reach out to your doctor for an APS – attending physician statement. This report provides insights to the insurer about your condition. The doctor provides it directly to the insurance company. If necessary, the insurance company may also ask for an additional questionnaire to be filled out and submitted with questions targeted to mental health and nervous disorders.
“When you are looking for life insurance and have dealt with depression in the past, it is really important to consider a few things. Insurance companies may have different policies and procedures for people in your situation. If you’ve been denied coverage before because of your depression, choosing a policy that does not require a medical exam could be a great option. To navigate this process and find the best policy for your unique situation, I highly recommend getting help from an experienced insurance broker.”
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Yes, life insurance does cover depression and anxiety. Should an applicant have demonstrated only mild episodes that are more than one year back, standard rates may apply, similar to ones somebody without depression could get.
In those severe cases, you can still decide to go for one of the no medical life insurance policies, which come with some limitations. These either ask a very limited set of questions about your medical condition (simplified issue no medical life insurance) or do not have a questionnaire (guaranteed issue life insurance). | Expert tip from Zale Goldstein “Depression can have a significant impact on life insurance from several perspectives. Firstly, it can lead to higher premiums or even coverage denial, especially if it is severe or has a history of hospitalization or suicide attempts. Insurance companies assess the risk associated with depression, and more severe cases are deemed higher risk. Secondly, policyholders with depression may have exclusions or waiting periods related to mental health in their policies. It’s crucial to be transparent about your mental health when applying for life insurance and shop around for policies that best suit your needs if you have depression.” |
Yes, life insurance does cover depression and anxiety. Should an applicant have demonstrated only mild episodes that are more than one year back, standard rates may apply, similar to ones somebody without depression could get.
In those severe cases, you can still decide to go for one of the no medical life insurance policies, which come with some limitations. These either ask a very limited set of questions about your medical condition (simplified issue no medical life insurance) or do not have a questionnaire (guaranteed issue life insurance).
“Depression can have a significant impact on life insurance from several perspectives.
Firstly, it can lead to higher premiums or even coverage denial, especially if it is severe or has a history of hospitalization or suicide attempts. Insurance companies assess the risk associated with depression, and more severe cases are deemed higher risk.
Secondly, policyholders with depression may have exclusions or waiting periods related to mental health in their policies. It’s crucial to be transparent about your mental health when applying for life insurance and shop around for policies that best suit your needs if you have depression.”
Most companies treat depression based on the severity of this health condition, last episode/date of reoccurrence, the need to get time of work or hospitalization. The more severe the condition, the higher the life insurance rates. In the most serious cases (e.g., after a suicide attempt or after being hospitalized) a standard life insurance application can be declined.
Here is an overview of how three insurers treat depression and anxiety in their underwriting.
| Mild non-recent cases | Mild/moderate recent cases | Severe recent cases including time off work / hospitalizations | |
| Insurer A | Standard rates may apply if the person has been in long- term remission, even if on medication (with no recent changes in dosage, etc.) | Some people suffer from chronic mild depression and they’re often insurable, though often with a medical rating that will depend on the severity of the condition. | When this condition is present for the first time insurance coverage usually isn’t available until the proposed insured is recovered for a minimum of six months. |
| Insurer B | If only one mild episode – could be standard. | If multiple mild episodes or a moderate case, rating can reach 150%. If suicide attempt, rating willbe higher. | If off work at time of application – decline with possible reconsideration in one year. |
| Insurer C | For mild/moderate cases, if over 1-year since diagnosis, may likely be standard risk. | For mild/moderate cases, if diagnosed within 1-year, minimum rating of 150%. | In all cases, if applicant is currently off work, we will postpone and may reconsider once the applicant has been working full time for a minimum period of 6 months. All severe cases may be considered after 1 year from diagnosis with a minimum rating of 200%. |
There are a variety of life insurance policies you can get with history of depression and anxiety.
| Insurance Type | Medical Exam | Detailed Medical Questionnaire | Short Questionnaire | Coverage Limits | Important to Know |
| 1. Traditional, Medically Underwritten Life Insurance with PREFERRED RATES | Yes | Yes | No | $5,000,000+ | Cannot apply. |
| 2. Traditional, Medically Underwritten Life Insurance with STANDARD RATES | Yes | Yes | No | $5,000,000+ | Possible with mild cases, which are more than one year back. |
| 3. Traditional, Medically Underwritten Life Insurance WITHOUT A MEDICAL EXAM | No | Yes | No | $5,000,000+ | Underwriting team will typically request an APS (Attending Physician Statement) to inform the final application decision. Some insurers would require completion of a mental/ nervous disorder questionnaire. |
| 4. Traditional, Medically Underwritten RATED Life Insurance | Yes | Yes | No | $5,000,000+ | Yes, the most likely scenario for people with more recent (within one year) depression episodes which were mild or moderate. Ratings go up to 150%. In some cases, severe cases after one year will be rated at 200% at a minimum. |
| 5. Simplified Issue Life Insurance | No | No | Yes | $1,000,000 | Yes, can typically qualify for this insurance. Questionnaires will vary across providers. |
| 6. Guaranteed Issued Life Insurance | No | No | No | $25,000 | Yes, you can always qualify for this one. |
Pretty much every life insurance company offers life insurance for people with depression, including Manulife, SSQ Life Insurance, Empire Life, Canada Life, Assumption Life and more.
If you are looking for a no medical life insurance policy for an applicant with depression, often Canadian Pension Plan or Assumption Life are a good choice.
We recommend working with an experienced life insurance broker who has access to most life insurance policies on the market and can compare depression-related application criteria across a wide variety of insurance companies to get you the best rate and coverage.
Our experienced life insurance brokers are happy to assist you on this journey – simply complete the quote request on the right side of your screen.
