If you want affordable burial insurance with mental illness, we have good news for you. Most final expense companies welcome applicants with this condition with open arms. In fact, you will hardly find any insurance company asking about mental illness in their health questions.
Each life insurance provider has its unique approval guidelines, and some insurers are more lenient with applicants who have a mental illness than others.
We know those companies and applying with them will save you time and money and prevent your application for coverage from getting declined.
Depending on the type of mental illness, level of severity, and effectiveness of treatments, many applicants can still qualify for a first-day coverage plan. This is true even if you have been hospitalized within the last 24 months.
Because burial insurance policies are a simplified issue, you will not have to take a medical exam or provide your doctor’s records. You only need to answer some basic questions about your health. You can receive approval from the insurance company within minutes after application.
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MENTAL ILLNESS AND ITS EFFECT ON LIFE INSURANCE ELIGIBILITY
There are close to 300 types of mental illness listed in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). In the U.S., approximately 46.6 million adults are suffering from mental illness.
Like any illness, mental disorder can affect your ability to qualify for life insurance coverage.
You will be eligible for coverage depending on the type of mental illness, level of severity, the effectiveness of treatment, and your overall health. Simply getting quotes online won’t help because each insurer weighs each risk differently.
It’s going to be a big mistake if you go with the first company that offers you a quote. More than likely, that company will not give the lowest rates. Before you sign a policy and pay premiums, get mental illness quotes from multiple companies.
TYPES OF MENTAL ILLNESS
Life insurance companies will consider some factors when deciding what plan to offer you and the premium you will pay.
The first thing they will consider is the type of mental illness. Depression and anxiety is a non-issue as long as they don’t interfere with daily living. If you’re active and working, you can qualify for first-day coverage.
Main Group of Mental Illness that may affect insurance eligibility:
- Mood Disorders – depression, bipolar disorder
- Anxiety Disorders – generalized anxiety disorder, panic disorder, social anxiety disorder, and specific phobias.
- Personality Disorders – obsessive-compulsive personality disorder, and paranoid personality disorder
- Psychotic Disorders – schizophrenia
- Eating Disorders – Anorexia nervosa, bulimia nervosa, and binge eating disorder
- Trauma-Related Disorders – post-traumatic stress disorder or PTSD
- Addiction Disorders – kleptomania (stealing), pyromania (starting fires), compulsive gambling, alcohol, and substance abuse
SEVERITY OF YOUR MENTAL ILLNESS
The second thing they will consider is the severity of your mental illness.
MILD– Your condition is under control, and you haven’t been hospitalized in the past 12 months. You are highly functional, and you have a job, an active social life, and a support system. Your best option is first-day coverage.
MODERATE – You had a few episodes in the last two years, but you are undergoing treatment with no suicide attempts and hospitalization during the previous 12 months. You can also expect to qualify for first-day coverage.
SEVERE – You’ve been hospitalized and currently on disability due to mental disorder. You have a history of suicide attempt in the last 24 months. Your best option for coverage is a guaranteed issue burial insurance.
The last thing the insurance companies will look at is the effectiveness of your treatment plan, your overall health, and tobacco use. You need to prove to the insurance companies that you are doing your best to get better and keep your condition under control.
OTHER FACTORS THAT MAY AFFECT ELIGIBILITY
Some insurance companies will specifically ask if you have been hospitalized within the last 12 months because of mental illness or other health issues.
In most cases, any company that asks this question will offer you a guaranteed issue burial insurance.
The good news is, some companies don’t care about hospitalization. So, even if you had a relapse or had been hospitalized in the last 12 months, you can still qualify for first-day coverage.
Each company has a “suicide clause” that denies death benefit to be paid out to the beneficiary if the insured dies from suicide within the first two years of the policy.
If you’ve been hospitalized for attempting suicide or you have suicidal tendencies, you are considered higher risk applicant.
If you have one or more suicide attempts in the last 24 months, your best option for insurance coverage is to get a guaranteed issue burial insurance.
ALCOHOL OR DRUG ABUSE
If you’ve been using drugs or alcohol within the past year, or you’re currently on drugs or alcohol, you will qualify for guaranteed issue burial insurance.
If you were recommended for treatment due to alcohol or drug abuse within the last two years, you would qualify for a graded death benefit or partial first-day coverage.
If your alcohol or drug abuse diagnosis and treatment are beyond 24 months, may burial insurance companies will let you qualify for first-day full coverage.
UNDERWRITING BURIAL INSURANCE WITH MENTAL ILLNESS
If you want first-day coverage and pay the lowest rate, you should apply for a plan with underwriting. The underwriting is consists of health questions and prescription history check.
The underwriting process for burial insurance with mental illness is simple and straightforward. You just need to answer some basic health questions. The underwriter will assess your health based on your answers. Your health and the medication you take will determine your eligibility.
THE HEALTH QUESTIONS
Some companies ask about mental illness in their health questionnaire. You could see the questions appear in different forms.
Here are the various ways you will see mental illness asked in the health questions:
- In the last 24 months, have you ever been diagnosed or been treated for mental illness?
- In the previous two years, have you been diagnosed or treated for mood disorder or severe depression?
- In the past two years, have you been diagnosed or treated for Bipolar or Schizophrenia?
- In the last two years, have you been hospitalized due to depression, anxiety, or any mental disorder?
Every insurance company uses different lookback period on mental illness, but the most common is two years.
If you’re not comfortable answering health questions, there is one burial insurance plan that doesn’t ask any health questions at all. They will not ask about your current health or check your prescription history. They will approve your insurance application regardless of your medical condition.
We work with companies that do not mention mental illness in their health questionnaire in the application. If a company doesn’t ask about a particular condition, they are perfectly fine and accepting of that health condition. Since they don’t ask about mental illness, it means they won’t count it against you when you are seeking coverage.
PRESCRIPTION HISTORY CHECK
Aside from the health questions, insurance companies will also electronically check your prescription history to verify your health.
They will review your current medication and what you’ve taken in the past to treat your mental illness to assess the severity of your condition.
Most mental illness patients are taking prescription medications to manage their condition.
Here are the most common mental illness medications:
- Aripiprazole (Abilify)
- Brexpiprazole (Rexulti)
- Bupropion (Aplenzin, Wellbutrin)
- Citalopram (Celexa)
- Clonazepam (Klonopin)
- Chlordiazepoxide (Librium)
- Chlorpromazine (Thorazine)
- Diazepam (Valium)
- Divalproex sodium (Depakote)
- Duloxetine ( Cymbalta)
- Escitalopram (Lexapro)
- Fluoxetine (Prozac)
- Haloperidol (Haldol)
- Nortriptyline (Pamelor)
- Olanzapine (Zyprexa)
- Oxazepam (Serax)
- Paliperidone (Invega)
- Venlafaxine (Effexor)
- Vilazodone (Viibryd)
If you are taking any of these prescription meds, they will consider you as a mental illness patient. Don’t worry, burial insurance companies are perfectly fine with these, and your application for coverage will be approved if you have no other serious health issues.
The only time these drugs would be an issue is if you apply with a company that is not mental illness friendly. However, most insurance companies are accepting of your condition.
POLICY OPTIONS AVAILABLE TO PEOPLE WITH MENTAL ILLNESS
FIRST DAY COVERAGE
Someone who has a mild to moderate mental illness who has been regularly taking medication, had his condition under control, with no history of suicide attempts, and in generally good health, will qualify for first-day coverage and no waiting period.
Minor health issues such as high cholesterol or high blood pressure is a non-issue, and you will still qualify for first-day coverage.
Simplified issue burial insurance with mental illness has first-day coverage and it does not require you to take a medical exam, but you need to answer some basic health questions. Your answer to these health questions will determine if you will qualify for insurance coverage and how much is your premium.
The best feature of this policy is 100% coverage from the first day one and no two-year waiting period. You will be immediately covered, and your beneficiary will receive a full death benefit payout when you pass away for any reason.
GRADED DEATH BENEFIT
Most life insurance companies’ offer graded benefit to those who have mental illness with a history of alcohol and drug abuse who have been sober for a year.
Graded death benefit offers partial coverage during the first two years before the policy is in force. It is the next best option to go for if you cannot qualify for first-day coverage benefit because of mental illness or other health complications.
Here’s how it works. If you die in the first year of the policy, your beneficiaries will only receive 30-40% of the benefit payout. If you pass away during the second year, your beneficiaries will receive 70-80% of the death benefit amount. 100% of the death benefit payout will be paid to your beneficiaries if you die within the third year of the policy and beyond.
GUARANTEED ISSUE BURIAL INSURANCE
Guaranteed issue burial insurance is the best option for people who have:
- severe mental illness who has been hospitalized in the last 12 months or have:
- suicide attempts
- other severe medical condition
- history of alcohol or drug abuse in the previous 12 months
- or currently on disability
There’s no medical exam, and you don’t need to answer any health questions either.
Guaranteed issue burial insurance accepts mild or severe mental illness with a disability because disability is a non-issue with final expense insurance companies.
While guaranteed final expense insurance plan may cost a bit more than first-day coverage, you don’t have to worry about the possibility of being denied insurance coverage due to your mental disorder.
People with mental illness can easily get guaranteed acceptance whole life policy. If you are 50 to 85 years old, you’re a U.S. citizen, and the plan is available in your state, you will be eligible for life insurance regardless of health.
Guaranteed acceptance burial insurance is graded for the first two years of the policy for natural causes of death. The insurer will only pay the 100% death benefit if you die from an accident during the two-year waiting period.
If you die from an illness during the first two years, the insurance company will only pay your beneficiary with all the premiums you’ve paid plus 7-10% interest.
When the two-year waiting period is over, you are fully covered, and your beneficiaries will receive the 100% death benefit payout if you die for any reason.
BURIAL INSURANCE WITH MENTAL ILLNESS
You will hardly find any insurance health questionnaires that ask about depression, manic depression, mania, or cyclothymic disorder. You will only waste your time looking for final expense insurance that asks about these conditions. Most insurance companies don’t care about these mood disorders.
Insurers will only be concerned if you have a history of suicide or thoughts of death. We can help you determine your options if you have struggled with these thoughts.
Best Option: First-day coverage
Other Option: Guaranteed issue burial insurance
ANXIETY DISORDERS – these conditions include generalized anxiety disorder, social anxiety disorder, panic disorder, and specific phobias.
Someone with mild anxiety which may be taking low doses of medication to treat his condition and doesn’t require counseling or therapy can qualify for first-day coverage. If you’ve never missed work due to anxiety and never have to be hospitalized because of this condition, you will be eligible for this plan.
If you’re not able to work, you’ve been hospitalized multiple times, or you’re on disability because of anxiety, you will only be eligible for guaranteed issue no health question policy.
Best Option: First-day coverage
PERSONALITY DISORDERS – The most common personality disorders are obsessive-compulsive personality disorder, paranoid personality disorder, and antisocial personality disorder.
Personality disorders are long term conditions that may affect the applicant’s ability to function in normal activities of daily living. Due to some potential life-threatening symptoms of people with personality disorders, they will only qualify for guaranteed issue burial insurance.
Best Option: Guaranteed issue burial insurance
PSYCHOTIC DISORDERS – Schizophrenia is an example of psychotic disorder. People with psychotic disorders have distorted awareness and thinking. Common symptoms are hallucinations and delusions.
Some insurance companies never ask about psychotic disorder or schizophrenia in their health questionnaire. If they don’t ask about your health condition, it means they are accepting of it. If you have been hospitalized because of an episode, we will place you with an insurer that never asks about it.
Best Option: First-day coverage (with some companies)
EATING DISORDERS – The most common eating disorders include anorexia nervosa, bulimia nervosa, and binge eating. Some applicants may be taking antidepressants or anti-anxiety medications to prevent episodes.
First-day coverage is possible if it has been at least four years since your last episode, you are in general good health and have no other mental illness.
If you recently recovered from your eating disorder and it hasn’t been four years since your last episode, or you have other health issues, your only option for coverage is to get a guaranteed issue burial insurance.
Best Option: First-day coverage
TRAUMA-RELATED DISORDERS – Post-traumatic stress disorder or PTSD can develop following a traumatic event, such as physical or sexual assault, death of a loved one, or a natural disaster.
Applicants who have a mild to moderate PTSD who has been taking medications regularly, with no history of suicide attempts or hospitalization, who are generally in good health, will qualify for first-day coverage.
Those with severe PTSD have been hospitalized, with suicide attempts, have a severe medical condition and currently on disability will only qualify for no questions asked GI policy.
Best Option: First-day coverage
Other Option: Guaranteed issue burial insurance
INFORMATION WE NEED IF YOU HAVE MENTAL ILLNESS
When applying for burial insurance with mental illness, it is important to provide us as much information as possible. This information will help us understand your current health and recommend the best plan suited for your needs
Here’s some of the information we need to know if you have a mental illness:
- What type of mental illness do you have?
- When where you diagnosed with this condition?
- Have you ever been declined for insurance coverage due to mental illness?
- What medications are you taking for your condition?
- How long have you been taking medications?
- Have you received electroshock therapy in the past?
- Have you ever been hospitalized due to mental illness?
- Do you have a history of suicide attempts or active suicidal thoughts?
- If you have Dysthymia (chronic depression), how long has this been present?
- Have you ever taken time off from work because of mental illness?
- Are you on disability due to mental illness?
- Do you have any history of alcohol or drug abuse?
- Do you have any issue with your driving records such as a suspended license, multiple moving violations, or DUI’s?
Knowing these details about you will help us provide you with the best recommendation and an accurate quote.
FINDING AFFORDABLE BURIAL INSURANCE WITH MENTAL ILLNESS
It should be clear by now that mental illness is not a major issue to most burial insurance companies.
Qualifying for burial insurance with mental illness is effortless, and you will be eligible for coverage regardless of your medical conditions.
To find the best burial insurance with mental illness, you must work with an independent life insurance agency like Funeral Funds that have access to multiple insurance companies.
Having access to different life insurance companies, enable us to match you with the insurance provider that is most lenient with mental illness. Some of the life insurance companies we work with look favorably to applicants with mental illness.
HOW CAN FUNERAL FUNDS HELP ME?
Trying to find a policy if you have mental illness needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a health history of mental illness, let us help you; we will work with you side by side to find a plan that fits your needs.
We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for the best insurance companies for mental health because we will do the dirty work for you.
We will shop your case to different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialized in covering high-risk clients like you. We will search all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for mental illness funeral insurance, or mental disorder burial insurance, or mental illness life insurance.
Fill out our quote form on this page or call us at 888) 862-9456 and we can give you an accurate quote.