Life Insurance | USA Life Insurance

Life Insurance Your Lifes Savior

The importance of life insurance cannot be stressed upon. Many of us come across confusing questions such as how are premiums calculated, how can I get a decent deal in life insurance, what all aspects should my life insurance cover, and many more. Thankfully, there are several things you can do to get rid of your doubts and confusion. Let us understand life insurance better.

What is life insurance?

This is a policy that you can insure against your life. I.e. it is an insurance policy that you can avail after your death.

Why is life insurance so important?

There is so much hype about the importance of Life Insurance, why is this? There is a chance that any of us might fall terminally sick, get seriously injured, or die. In order to cope after these grave illnesses, it is important to have a back up.

The perfect back up would be life insurance. Life insurance with the help of certain life insurance agents or companies gives you the best deal to give your family a financial back up after you are gone. This is of immense help as your family is sure to need financial aid after you are gone. Keeping all this in mind, it is important to ensure that you get a good life insurance policy fast.

When is the right time to avail life insurance?

When it comes to life insurance the younger the better. Many of us are misinformed that only the old and elder people will need life insurance. This is not so. When you are younger, you are going to have lesser health problems so make sure you get the right life insurance policy right away when you are young.

How to get life insurance?

There are many online websites that will give you full fledged info on life insurance. You can even get a Free Life Insurance Quote from them. This is the approximate amount you need to pay for your life insurance plan.

Hope these questions cover the basics of life insurance for you and help ease your doubts a bit.

What Type Of Life Insurance Is Best For Me?

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Taking All the Questions Out of Life Insurance Types and Requirements

Are you ever too old to get life insurance? Not necessarily, but contrary to insurance salespeople, not everyone is a candidate for life insurance. There is also a lot of confusion around the difference between types of insurance such as term life and whole life insurance. Our goal is to take the confusion out of all your life insurance needs.

Many people do not understand whether or not they actually require life insurance. Most people try and avoid thinking about it and justify it by claiming they won’t need any money when they are dead. That is indeed true, but the bigger question is, “Will your spouse and or dependants need money?” If they answer is yes, you may be shopping for life insurance. The next question is what kind?

You can choose from term life insurance, whole life insurance, universal or variable universal life insurance, no-load life insurance and let’s not forget mortgage life insurance. This is a great way to have your mortgage paid off immediately if you die. This will mean your family can live mortgage free for as long as they own the house. With all the different types of life insurance policies, it no wonder most people choose not to do anything. Our goal is to take the mystery out of these policies so that you can make an informed decision.

The Different Types of Life Insurance

o Term Life Insurance: Term insurance is the backbone of most life insurance policies. You pay a fixed premium over a specified period of time. If you happen to die during that timeframe, the insurance company pays you the pre-determined amount. The issue with term life insurance is that if you don’t die within that period, the coverage ceases to exist and you are left with nothing. Another issue with term life insurance is that your premium can go up after a period of time. You can often buy another insurance policy after the term expires, the rate however will often be much higher.

o Whole Life Insurance: Unlike term insurance, whole life insurance covers you for your entire life. Basically, you pay a premium each month for the rest of your life. If you choose, you may cash in the policy while you are still alive and receive a lump sum amount. Whole life insurance policies have a face value and a cash value. The face value is the amount that is paid at death or policy maturity, the cash value is the amount you receive is you surrender the policy before you die or it matures.

o Universal Life Insurance: This type of insurance again is very different than the two above. This type of insurance policy takes your premiums and invests them into bonds, mortgages and money market funds. Your investment fund pays for the cost of the death benefit that is set when you purchase this life insurance. If your investment fund does poorly, the insurance company is on the hook to pay out a minimum guaranteed amount. This type of life insurance policy is a bit more flexible than the others because you can change the premiums and death benefits to fit your current budget. This type of flexibility is often popular with younger couples or families where circumstances can change quickly.

o Variable Universal Life Insurance: This type of insurance policy will depend heavily on how well your investment opportunities have done over the years. The better the investments do, the greater the death benefit payoff for you.

o No-Load Life Insurance: Low-load or no-load life insurance often times has fewer expenses than a traditional life insurance policy. What this means for you is that more of your premium goes towards earning you more money rather than commissions and other expenses. Speak to your financial advisor as they will likely sells no-load or low-load life insurance policies for a flat fee versus a commission.

Once you have decided that you are going to buy life insurance, the next question you need to ask is,”How much?” We highly recommend that you speak with your financial advisor and accountant. They will be able to help you determine exactly the amount of cash your family will require to maintain their current standard of living if anything should ever happen to you. They will be able to help determine what kind of life insurance rate you can afford based on your current income and expenses.

We hope we have achieved our goal about informing you on the various types of insurance on the market. There are a number of excellent insurance brokers who can offer you a range of products. We hope you have given you some information so that you can ask the right questions for you and your family.

High Risk Life Insurance- It Come Down To An Experience Agent

High Risk Life Insurance is generally purchased for two reasons:

1. You participate in hazardous activities or avocations (i.e. scuba diving, rock climbing, vehicle racing, flying as a pilot, etc.).
2. You have a health condition that is hard to insure (cancer, diabetes, heart disease, etc.).

Both of these circumstances mean that you are a higher risk for an insurance company to insure. Because you are a higher risk, your insurance will cost more.

Luckily, there are insurance agencies specialize in higher risk and impaired risk situations.

Just because you have sleep apnea, diabetes, a coronary artery stent, or other serious illnesses, doesn’t mean you should get turned down or be charged significantly higher premiums for whole, universal, or term life. An experienced life insurance agent can help you find higher risk insurance company that will provide you with the benefits and coverage that you and your family need.

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An experienced agent with knowledge of higher risk insurance carriers will help you survey potential providers to find the best high risk insurance companies and higher risk life insurance rates.

Most insurers use mortality tables based on 30-year-old data (mortality tables are used to determine rates). Luckily, a handful of others employ “clinical medical underwriting”-an underwriting philosophy which takes into consideration the latest medical advances and lifestyle choices that allow people with health problems to live long lives. This is great news for an insured that has applied with a local agent that may not specialize in risky insurance situations. If you are deemed a high risk to an insurance carrier, you need to deal with an insurance agency that specializes in high risk situation. You agent will be able to discuss possible carriers that will insure your case based on the finding of your interview. Call an agent that specializes in high risk life cases.

High Risk Life Insurance For Final Expenses

The high risk life insurance market place has been an underserved market for many years. Most insurance carriers prefer to insure low risk clients for obvious reasons. There are several life insurance carriers that are very aggresive in the final expense market place. The primary objective in obtaining life insurance is to indemnify your loved one upon death. The severity of your condition matters only to most traditional insurance carriers that do not serve the high risk life insurance market place. If you have a terminal illness, or were recently diagnosed with a medical condition, you may also have news from your current life insurance carrier that you do not qualify to renew your current policy. If you need burial coverage, which almost everyone at a minimum needs, you need to speak with an agent that has your best interest in mind. Often times agents will tell you “your uninurable” or try and sell a higher priced policy then you actually need. If someone told you that your uninsurable you need to get away from that agent and work with someone that is willing to work with you to find you the coverage you need. There really is no such thing as uninsurable. There is always a carrier that is willing to write your case. Finding the right agent and right policy is like finding the proverbial “needle in a hey stack”.

The reality is most agents dont want to be bothered writing a ,000-,000 policy because its not profitable for the agent. There are plenty of companies that are willing to write your case, you just need to find one, and get on the phone with that agent/agency as soon as possible. Life insurance is not a commidity, it is a neccesity for all families regardless of income. The other issue we see clients having is a past criminal history. While its true most carriers will not issue a policy to someone on probabtion. A true guaranteed issue life insurance product will issue a policy regarless of criminal history. The underwriting guidlines for each life insurance carrier is different. Call an experienced, high risk life insurance agent to help navigate the complexities of your case.

Life Insurance For Seniors

is more expensive than life insurance for younger individuals because seniors are more of a risk to insure. That may sound unfair, but the biggest factor that determines life insurance rates is life expectancy.

Life insurance companies go through a process they call underwriting. This process involves taking a good look at the applicant’s life, including hobbies, health, health history, family health history, age, sex, height, weight, and even DMV records.

This may seem like a lot (and even an intrusive look into your life), but the point behind it is that the life insurance company has to make sure you are not too much of a risk for them to insure. If they insure too many people that are too great of a risk, they put themselves in a bad situation where too many death benefits are being paid out and the company loses financial stability.

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Because life insurance companies have to pay death benefits to the beneficiaries of policy owners that have died, people who are more likely to die will always end up paying more for life insurance—if they are able to get a policy at all. (Yes, there are many people that get turned down because they are too much of a risk to insure).

In short, because seniors are older and closer to passing on, life insurance will be more expensive for them.

Now, just because life insurance will be more expensive does not mean that you should just apply with anyone.

There are many life insurance companies. Each company has favorable rates for different cross-sections of the population.

To make sure you apply with one of these companies, you need to apply with a life insurance agent or agency that understands which companies are the best for people like you.

How To Buy Life Insurance

By Life Quotes, Inc. Staff

Most people buy life insurance to ensure their loved ones are protected financially in the event of their death. But people don’t often realize that although paying funeral expenses and replacing income are two very important reasons to purchase a life insurance policy — you can also use life insurance to pay for a home, plan for retirement or prevent tax penalties when you transfer an estate.

Whatever your situation, it’s important to know which policy fits your particular needs and those of the people you love. The Life and Health Insurance Foundation for Education, a non-profit consumer insurance education organization, offers these tips for buying life insurance.

Consider those who rely on you financially, including your spouse; children, parents or other loved ones. You should periodically re-evaluate your insurance needs whenever there is major life change, such as getting divorced, buying a home, or changing jobs.

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“A life insurance policy should be reviewed when there are major times for financial change in your life,” suggests Jack Dewald, Chair-elect for the Life Foundation. “Even if there hasn’t been any major changes in your life, you should reevaluate every five to seven years to see what you have and what you need and what you don’t need anymore.”

How much is enough?Ask yourself how much money your family will need to cover living expenses and how much they will need over the long-term to maintain their standard of living. The Life Foundation provides an interactive calculator at www.lifehappens.org/lifecalculator to help you estimate your needs.

Does it fit your needs and your budget?Research term and permanent policies to figure out what kind of life insurance is right for you.

Find an expert that can explain the different types of life insurance available. You can find an insurance agent through referrals from someone you trust such as friends and family.

Have your agent or broker put together a life insurance needs analysis. A needs analysis is a personalized illustration of your current and future financial needs. The worksheet would include: Income needs, expenses, existing assets and insurance, new insurance amount needed, rate of return flowchart, summary of rates of return, a comparison between rates of return upon death, annual rates of return by age, assumptions or client and insurance policy information.

Research the insurance company or the broker you plan to work with to determine its financial stability.You can check out an insurance company’s financial strength rating at A.M. Best, Fitch, Moody’s and Standard & Poor’s websites.

Investing in life insurance can be an important asset in your investment portfolio.
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Can a history of substance abuse raise your life insurance rates?

By M.K. Guetersloh

Life Quotes, Inc.

The hard partying years after college may have been replaced by the calm of married life. But those past behaviors may haunt you like an unwanted call from a former sweetheart—especially when you try to buy life insurance.

In order to receive standard rates, most insurance experts agree that drug and alcohol abuse problems need to be behind you for a minimum of five years.

Excessive use of drugs and alcohol can cause a number of serious health conditions. Researchers from the University of North Carolina, Chapel Hill, Bowles Center for Alcohol Studies, estimates that alcohol and drug abuse can decrease your lifespan by nearly 10 years. Among the health risks, drug and alcohol abuse can cause high blood pressure, cancer (breast, esophageal, mouth, larynx and pharynx), liver disease, and heart or respiratory failure. The American Cancer Society reports that 2 to 4 percent of all cancers are directly related to alcohol abuse. The mixing of drugs and alcohol can be immediately fatal leading to seizures, coma, heart attack and respiratory failure.

“That kind of behavior can affect your rates catastrophically,” says Ryan Pinney, a high-risk insurance specialist for Roseville, Calif.-based Pinney Insurance Center, Inc. “It’s a health hazard and a moral hazard.”

In addition to affecting your rates for life insurance, Pinney says, drug and alcohol abuse can also affect your health and auto insurance rates. In some instances, if you have a DUI, you might find your auto insurance policy cancelled altogether.

While drug and alcohol dependency is a fairly common obstacle for those seeking life insurance, Dr. Robert Pokorski, Chief Medical Strategist for The Hartford, says that it’s still not impossible to get a life insurance policy at an affordable rate— if you no longer drink.

“The classic case is: you have someone who is getting a little older and realizes they need to take better care of themselves,” Pokorski says. “If they put five years between themselves and those events, they are very insurable and can get standard rates.”

Insurers ask prospective policyholders to be forthcoming on medical questionnaires, but if you pass the medical questionnaire you’re still not out of the woods yet. Insurance companies also review a prospective customer’s medical and driving records along with blood and urine tests.

Pinney says of you have a problem with substance abuse—the best course of action is to talk to an agent about those problems

Insurance companies can access information about a person’s health status through the Medical Information Bureau (MIB). The MIB protects insurers, policyholders and applicants against insurance fraud in the life, health, disability, critical illness and long-term care lines of insurance.

If you’ve been denied life insurance due to a health risk such as substance abuse, a record of the denial is kept in the MIB’s database,

“Any insurance company can look up your information in the database,” says Pinney.

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For that reason, Pinney says, “The worse thing they can do is blindly apply to several insurance companies for coverage and omit information, especially after a denial.”

Although drugs are more difficult to detect and some insurance companies such as The Hartford don’t test for drugs, alcohol abuse can be found in several tests used by most insurers to detect problems with liver function. During a paramedical examination, blood samples are subjected to a Carbohydrate Deficient Transferrin (CDT) test to rule out liver disease. Often, when excessive drinking is involved, a person’s liver function will be elevated.

“Honestly is definitely the best policy,” Pinney said. “If you don’t disclose to an insurance company that you have a problem and they find it in your blood work or they find that you were arrested for driving under the influence last year; they won’t be very happy and they won’t insure you. In fact, no one will.”

Allen Hixon, manager of State Farm’s life and health underwriting division, agreed.

If someone is able to hide their problem from an insurance company’s review and a policy is issued, Hixon says insurance companies might balk at paying the claim to beneficiaries if it’s found out later that they hid information.

“If an insurance company can argue that the policy was entered into fraudulently that could limit what the beneficiary receives,” Hixon said.

Hixon and Pokorski add that unlike hard drugs, insurers view alcohol and marijuana a little differently.

“How someone gets the hard drugs can also make a difference,” Hixon says. “If the abuse comes by someone who has been prescribed chronic pain medication and they can’t shake it, it’s a little different than someone who is going out to the street corner to buy cocaine or heroin.”

For those who have gone through treatment and recovery, insurers recommend waiting at least two years before seeking life insurance.

State Farm generally uses two years of being clean and sober as a benchmark to revisit a policy, but Hixon warns that the rates may still be a little higher.

Pinney says that insurance companies are looking for three things when it comes to underwriting drug and alcohol abuse:

complete disclosure of problems,
compliance with their doctor’s orders to stop the behavior,
and what is the ultimate result of that person’s efforts to remain clean and sober.

A person who wants to drink less alcohol should drink white wine.

The standard 5-ounce serving of white or red wine, a 12-ounce bottle of beer and a ½-ounce shot of 80 proof distilled spirits contain the same amount of alcohol and register the same on a Breathalyzer test.

Drinking red wine is good for your heart.

Red wine can prevent heart disease if it is limited to only one drink a day.

DoesDrinking beer causes a “beer belly”?

Eating too much food causes a “beer belly.” No beer or other alcohol beverage is necessary is needed to create one.

Drinking will add pounds to your waistline.

Drinking alcohol does not cause weight gain. This myth is widely believed because alcohol does have calories. Extensive research has concluded that it does not cause weight gain in men. For women, the research found alcohol frequently causes limited weight loss.

Only college students binge drink.

Few college students are binge drinkers. In recent years, the number of students that drink continues to decline including the number of students that drink heavily. Some researchers have defined binge drinking as consuming at least four drinks a day for women and five drinks a day for men. Many college students become branded as binge drinkers because they qualify under that definition. However, by definition binge drinking is an extended period of drunkenness that lasts for several days while the drinker drops out of normal life activities.

Men and women can drink the same amount of alcohol if they are roughly the same height and weight.

Men can metabolize alcohol faster because they have more lean muscle than women. Lean muscle helps dilute the affects of alcohol because it increases the percentage of body water. Women typically have a little more fat than lean muscle compared to men. Also, alcohol can affect women more rapidly. Women also have less of the enzyme dehydrogenase, which metabolizes alcohol. And woman’s menstrual cycle also affects how alcohol is absorbs and metabolized.

The strictest drinking laws are found in the United States

Among Western nations, the United States has the strictest drinking laws for young people. Age 21 is the highest minimum drinking age in the entire world. These tight rules continue by covering adults with zero tolerance rules regarding public intoxication and drinking and driving. The country with the highest consumption of alcohol in the world per capita is the United States.

The United States is ranked 32nd with an average consumption rate of 1.74 gallons of pure alcohol per person annually.

According to latest estimates, the Top 10 Alcohol Consuming Countries and the average gallons of pure alcohol consumed per person is:

Portugal 2.98
Luxembourg 2.95
France 2.87
Hungary 2.66
Spain 2.66
Czech Republic 2.64
Denmark 2.61
Germany 2.50
Austria 2.50
Switzerland 2.43

Sources: Alcohol: Problems and Solutions, Hanson, David; Carroll, C.R. Drugs in Modern Society; Cline, C. N. (Ed.) The Frequently Asked Questions (FAQs) of Life; Wechsler, H., et al., Journal of American College Health, 1998; National Institute on Alcohol Abuse and Alcoholism; Avis, H. Drugs and Life; Lowenson, J., et al. (Eds.) Substance: A Comprehensive Textbook; Barr, A. Drink: A Social History of America.

This article originally published on www.lifequotes.com.

How personal bankruptcy impacts your life insurance policy

By Dawn Reiss, Life Quotes, Inc.

Filing for bankruptcy is usually person’s worst nightmare, but when it comes to protecting your assets (including the value of your life insurance policy), information is key.

A life insurance policy is considered valuable property, which means creditors may attempt to “acquire an interest in the policy’s values,” but all states and the federal government have “enacted legislation providing protections for life insurance against the claims of creditors,” says Glenn E. Stevick, Jr., a professor with The American College.

Here’s some basics you should know when it comes to bankruptcy and how it affects your life insurance policy.

First, more people file for bankruptcy than you might imagine. With the latest economic downturn and mounting bills, the current bankruptcy-filing rate is at a 5-year high, according to recent data released by Automated Access to Court Electronic Records (AACER). What’s more, the American Journal of Medicine reported that more than 1.5 million people filed bankruptcy last year, 60 percent of those filings were the direct result of medical bills.

The American Journal of Medicine, for example, found that 1 in 25 people in the Bay Area have filed for bankruptcy last year, says bankruptcy attorney, Jeena Cho of San Francisco-based JC Law Group.

“It’s like the dirty little secret,” Cho says. “Two things that we don’t talk about are death and money. When people start talking about their financial issues, they find there are plenty of people in the same boat.”

There are two types of bankruptcy for individuals: Chapter 7 and Chapter 13.

Chapter 13 is where you can hold on to your assets and aren’t at risk for losing property, but you must repay some of the debt over a three to five year period. If your cash value for life insurance is worth more than the exemption in your state, then consider filing Chapter 13 to protect your assets, Cho recommends.

If you pass a means test and can file a Chapter 7, you must liquidate your possessions and assets, which typically takes four months. It also means your life insurance policy could be affected.

Cho says one of the worst things someone can do is liquidate their assets and start borrowing money from their life insurance and retirement funds, which are almost always protected in bankruptcy.

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“People start taking whatever little money they have to see if they could get out of debt by re-paying it,” Cho says. “I see people drain their ,000 retirement fund for 0,000 in credit card debt. They start selling their cars and homes without an exit strategy. The game plan is to keep as much as possible.”

Also, make sure you disclose everything including the current, accurate cash value of your whole life insurance policy. Some people don’t “because they are afraid to and end up losing it because they failed to disclose it’s true value,” says David Leibowitz, a bankruptcy lawyer for Lakelaw in Chicago, Ill.

Under state and federal bankruptcy law, an individual filing for bankruptcy may elect exemptions under federal or state law, but not both. Explains Stevick, 34 states like Illinois, New York, California and Florida have “opted out” of the federal law and have inducted their own state protections.

Sixteen “choice states” – including Texas – allow debtors to choose between federal and state exemptions. Under federal exemptions, one can protect up to ,775 of a life insurance policy’s cash value (doubled for married couples). Also, in some states the unused portion of the homestead exemption (real and personal property) may be used for other property, including the cash value from a life insurance policy. Some states require the policy to be in force for one to two years for protection under a state exemption, to prevent using life insurance as a shelter in bankruptcy planning.

In order to be eligible to file bankruptcy under state protections, you must be considered a resident and live in a state for 24 months.

In Illinois, whole life insurance is exempted from creditors to the extent that it is necessary to support a dependent (a spouse and dependent children), but the legal interpretation is up to your bankruptcy judge.

When you file your bankruptcy petition you’ll typically include a schedule or list of your exempt property, which can include your life insurance policy.

Ron Caruthers, a financial planner, who helps individuals pay for college with over funded life insurance policies, says Florida, is the most debtor-friendly state to file bankruptcy since it has a strong homestead exemption. Another debtor-friendly state is Texas, which allows large exemptions for cattle and homesteads.

“It’s why O.J. Simpson took all his assets and moved to Florida and put them into life insurance and a home, since they couldn’t touch either when he filed for bankruptcy,” Caruthers says.

On the opposite end of the spectrum is Arizona. Caruthers says Arizona is the most creditor-friendly state.

Keep in mind that all 50 states are different when it comes to bankruptcy protections, so it’s best to contact a financial planner or bankruptcy lawyer in that state to learn more.

Here are some suggestions for what to look out for before you file for bankruptcy.

How much of the proceeds in the death benefit are protected against creditors (some state have a dollar amount like ,000 or ,000 other states allow the entire amount.)

For example, in California an unmatured policy is exempt up to ,475 for homeowners filing jointly or separately under code 704 (c ), non-home owners file under 703.140 (b) which allows for up to ,800. Say your life insurance policy exceeds ,475 than you can use the wild card exemption of ,250, which can be applied in part or in whole to the policy as well.

Pay close attention to differences in state and federal laws and what parties are protected – the policy owner, beneficiaries, etc.

This article was originally published at Life Quotes, Inc.

Can you be denied life insurance if you have anxiety or depression?

We’ve all had times in our lives when we didn’t feel at the top of our game. Maybe it was due to a job loss or the death of a family member; there are numerous reasons for feeling down.

However, according to the National Institutes of Mental Health, for 26.2 percent of Americans age 18 and older this feeling of hopelessness is due to a diagnosable mental disorder. That is approximately 14.8 million adults suffering from a major depressive disorder and about 40 million adults suffering from anxiety.

What’s more, a study conducted by the University of Michigan states that in today’s faltering economy, job loss and financial strain can lead to depression that lasts up to two years after an individual is employed in another position.

If you apply for life insurance can a history of depression and anxiety can lead to a decline, but often that is not the case.

When applying for life insurance, insurers are interested in an individual’s mortality rate and anything that might prematurely shorten their life. Insurers generally ask a potential policyholder to provide a personal and family medical history, in addition to answering questions about the types of “risky” hobbies the policyholder participates in, such as scuba diving or rock climbing. The information provided can red flag an underwriter into giving the application a second glance in order to determine if they should assign a waiting period (before the person can apply for life insurance), deny coverage or offer a “rated” policy.

In most cases, depression and anxiety counts as a “pre-existing” medical condition on a life insurance application. So if you are overweight, smoke, skydive regularly, and happen to be depressed, you would have a higher mortality rate than a fit and trim nonsmoker who has a less exciting hobby and a better state of mind. In fact, a recent study by the Netherlands Institute of Mental and Health Addiction found that mortality rates for those with depression are significantly higher than those in mentally healthy individuals.

This is not only due to risk factors such as suicide, but to the toll that depression takes on the body, which can include high blood pressure, heart problems, and decreased immune function. This translates to someone who isn’t eating right or not at all, sleeping poorly and not exercising. When you couple this with a higher rate of drug and alcohol abuse among those who are depressed, this can bring a number of additional medical concerns.

Insurance companies generally consider the criteria for a major depressive disorder to be a history of depressed mood for at least two weeks, in addition to four or more symptoms that include changes in weight, sleep disturbances, feelings of worthlessness or guilt, problems with concentration and suicidal thoughts.

Allen Hixon, manager, State Farm Life Insurance Company, says standard rates would still be available for applicants who have a “mild” bout with depression. “Generally, preferred rates are not available for some period of time following a diagnosis, but when they are, it would be for individuals who have responded well to treatment. They would also have to demonstrate an excellent medical outcome for some period of time, but this varies by severity, from the date of diagnosis,” says Hixon.

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Ryan Pinney, brokerage director for Pinney Insurance Center in Roseville, Calif., agrees, “In more severe cases or for those who have a history of suicide attempts or hospitalization, [there would be] a rating or possible decline. The rating or decline would be determined by how long ago these issues occurred; the longer the better. If it is more than five years, then the rating would be in the low category.” Pinney suggests contacting multiple companies to find a better rate and working with a firm or agency familiar with depression and mood disorders.

Those suffering from anxiety have a slightly easier time obtaining life insurance, but are still considered a risk by life insurers. In most cases, insurers will offer a standard rate for someone that suffers from anxiety or panic attacks, but preferred rates would not apply in this case.

Pinney says, “By itself [anxiety] is normally a non-issue and therefore not ‘rateable’ for insurance companies. Where it does become an issue is when medications and treatment is prescribed. Often the medications used to treat anxiety are the same as those used to treat some forms of depression. This blurs the line between the two from the underwriter’s perspective and may cause them to take a closer look and ultimately rate anxiety cases.”

Pinney suggests if you suffer from depression or anxiety, tell your insurance broker upfront. There are no set rules when it comes to insuring those suffering from depression or anxiety and if your broker is aware upfront, it can be worked into your quote.

You may not be eligible for the coverage you wanted but you may not be excluded from coverage altogether.

“An individual may be temporarily declined coverage if they’ve been recently diagnosed. This is because there is usually insufficient medical information and treatment history available to determine if his or her prescribed treatment is effective. Normally, this would be within the first three to six months after being diagnosed,” advises Pinney.

If you have been under a physician’s care for an extended period of time without incident, chances are greater that your insurance coverage will be less of an issue.

You may need a letter from your physician explaining your situation and how you are reacting to treatment along with documentation showing what triggered your depression and what you did to control it. But, if your medical records show that you were proactive, your chances of obtaining coverage may increase.

Pinney reminds us that manic and chronic depressions are actual medical diagnoses that would be based on his or her specific conditions. “Someone who has experienced a ‘rough patch’ would be defined as someone with a transient issue that is causing his or her anxiety or depression,” says Pinney.

Examples of these would be the recent loss of a spouse or loved one, bankruptcy, divorce, and financial or legal issues.

“Insurers are usually pretty good at identifying these differences and can often make exceptions to their rules and guidelines, if they are given a specific and compelling reason to do so. This would normally come in the form of a letter from the individual, individual’s doctor, or the insurance agent involved. Pinney explains that this is generally a cover letter that would explain any issues or problems that may have contributed to the depression or anxiety.

“At the end of the day, the insurance carriers will be considering the medical records of the proposed insured, his or her medical exam, and any additional records or cover letters provided. Again, the more detailed and compelling the information, the better chance that the individual will be able to receive the most favorable rate class.”

One major life insurance company offers a non-rated policy to someone who has “mild” or “occasional” anxiety and depression. The following criteria must be met:

No suicidal ideation for at least one year

Can perform normal activities with minimal symptoms

No more than two medications (no antipsychotic medications) for anxiety or depression

No hospitalizations, suicide attempts or disabilities for at least nine years

TABLE-B rating No thoughts of suicide for up to six mos.

Perform normal activities with moderate symptoms

No more than three medications, (no antipsychotic drugs)

One incident of short-term disability

No hospitalizations or suicide attempts up to nine years

Anything more severe or significant that might require antipsychotic medication

Suicide attempts, hospitalizations, long-term disability, decline for the first year during recovery

After recovery, the applicant would receive a table rating depending on the number of years they have been successful in their recovery, the amount of time since their last episode, and proof that they’ve adhered to the proper treatment from a licensed doctor or psychiatrist.

A higher rating would apply for those with multiple severe depressive episodes