Life Insurance and Mental Health: Disclosure and Exclusions

In general, yes, a history of anxiety or depression does not rule you out of life insurance. Insurers assess each application individually and weigh things like the severity of the condition, how recently it occurred, the type of treatment and how stable your recovery has been. Because of this, two people with similar histories can receive quite different offers from different insurers. The only way to know how a specific situation is likely to be assessed is to look at it properly, which is something an adviser can help with.

It depends, and there is no single outcome that applies to everyone. Common results include standard cover with no special terms, cover with a premium loading (a higher price to reflect the added risk), or a mental health exclusion applied to some types of cover. Exclusions are most often seen on income protection or total and permanent disability (TPD) cover rather than on death cover. Importantly, an exclusion is not always permanent. In some cases it can be reviewed after a period of stability, which is covered further below.

Honest disclosure is essential. When you apply, you have a duty to take reasonable care not to make a misrepresentation, which means answering the insurer's questions truthfully and completely, including questions about past counselling, therapy or medication. Leaving out relevant information can affect a future claim, even years later. If you are unsure how to describe something or whether it needs to be included, it is far safer to ask before you apply than to guess.

This is a question worth pausing on rather than rushing. An exclusion on TPD or income protection materially changes what you are covered for, so it is worth understanding why it has been applied and whether another insurer might offer better terms. Because outcomes vary so much across the market, an exclusion from one insurer does not mean every insurer would do the same. Whether to accept it depends on your circumstances and your other options, which is the kind of decision worth talking through with an adviser before you commit.

Sometimes, yes. Exclusions are not always permanent, and some can be reviewed after a defined period of stability, for example a stretch of time without symptoms, treatment changes or further episodes. The process and the time involved vary by insurer and by situation, and there is no guarantee. If you already hold cover with a mental health exclusion, it can be worth having someone review whether you may now qualify for better terms, either with your current insurer or elsewhere.