The answer is yes you can be, and it’s alarming to say the least. As many of you know I am a finance professional and I believe that if you have the means, life insurance is a good investment particularly if you have a family. So, you get an application for life insurance, do you tell them you have an anxiety disorder?
Ethically and morally the answer is yes you do, lying isn’t a good thing in most situations. Financially and strategically? No, you don’t because you can be denied the insurance if you have an anxiety disorder. A couple in Ontario are dealing with that reality right now.
Quote from the article:
“Fairly common practice
Vicki Zhang, who works in statistical science at the University of Toronto, said “it’s a fairly common” industry practice for insurers to penalize those with pre-existing conditions, whether they are physical or mental.
“The private insurance sector has become very, very competitive and very profit-driven,” said Zhang. “From their bottom-line perspective, it makes sense for them not to cover someone with mental illness … especially a known condition.”
Now obviously insurance companies want to make money. You pay a premium and they are betting that you don’t have to use the product. The gain or loss for them is in volume, meaning they insure 100 people and 10 people use it, the other 90 essentially covered the 10. It’s a good business model built on a less than noble premise that people are willing to pay money to insure against negative outcomes.
Some people, and those of us with anxiety especially, worry a lot about things we can’t control. We are perfect candidates for insurance. That said, you can be denied if you have an anxiety disorder or must pay more for coverage due to the risk. Is that fair?
From a business stand point it is, Anxiety disorders at the extreme can lead to death. The real problem is the factors that lead up to an extreme outcome are hard to forecast for anxiety disorders. Its not like a heart condition, where the person may be obese. If you have a family, you should have life insurance. My father died when I was young, and we didn’t have enough insurance and my mother lost the house.
We all came out of it okay, but it was hard for a year or two. If you have life insurance, great! if you don’t and are considering it, remember the best practice is to be honest. If you are denied coverage from one carrier (like the example in the article) it doesn’t mean you will be denied by another. Life insurance is peace of mind for you and your family, we all die we just don’t know when it will happen.
You are doing great though, one issue at a time, one day at a time.