How does mental illness play into disability insurance?
First, there is the underwriting process. If you have had a history of mental illness, the companies will most likely look at mental illness like other types of diseases. They will request medical records from your treating doctors and will make an assessment. There is a wide range as to how companies look at mental illness. Some companies will automatically decline applicants who are currently being treated for mental illnesses. Some companies will consider the amount of time treatment occurred and if the applicant is currently being treated. Based on their assessment, most companies will either deny coverage or will institute an exclusion for that condition. Other companies may issue a policy with an exclusion, a rating (increased cost) and possibly a shorter benefit period.
It is important to work with a broker experienced in the area of disability insurance to assess the best course of action.
Since mental illness accounts for a large number of claims, some companies have a 2 year mental nervous limitation on policies. This means that if you have a claim relating to a mental or nervous disorder (psychological condition), benefits will only pay for 2 years. This is not to be confused with a neurological condition which would be treated like any other condition.
For more information, contact Set for Life Insurance today.