Whether it is epilepsy or another seizure disorder, the diagnosis is not necessarily a dead end for life insurance approvals. The key to approval and reasonable rates is control.
Seizure disorder is another one of those life insurance issues that evokes a knee jerk reaction from the majority of companies. Their guidelines just simply don’t have a place for anyone with a history, even a long past history, of seizures, other than their decline bucket. Diagnosed recently with epilepsy. Into the bucket you go. Nocturnal seizure disorder with no known seizures in 10 years. In the bucket. Diagnosed with epilepsy in your teens and no seizures since. Bucket time.
While this may seem unfair, it is certainly the right of an insurance company to define the risks they want to assume. The good news is that there are many companies that don’t share their definition or their philosophy. These are the companies that a good independent agent can track down for you.
As mentioned, control is the key issue. Once the correct treatment is found and seizures become rare or, as happens frequently, non existent, standard or better rates are often available. We’ve had clients who have been victims of the decline bucket with other companies who have been approved at preferred rates. Right agent. Right company. It shouldn’t logically make a difference, but it does.
Bottom line. Even if you’ve been declined for life insurance, don’t give up. Many people are concerned that a decline has a “black ball” effect for any future efforts. Nothing could be further from the truth. Turning a decline from the wrong company into an approval from the right company happens frequently.
July 12th, 2008
The amount of misinformation, or overblown information concerning bipolar disorder is troubling especially to those who are trying to overcome the stigma in their lives and in quests such as trying to apply for life insurance. Bipolar disorder, for many, conjures up images of a completely dysfunctional person who on a good day is riding a manic high and trying to make the world happy and on a bad day is, well, wanting to end the day by suicide.
The truth is that for some bipolar disorder can be an all consuming monster and unfortunately, for those who aren’t able to get it under control, it can end tragically. That, in my experience, would be the minority. I am finding out that it is far more common to run into fully functional doctors, lawyers, CEO’s and moms who are able to juggle all the responsibilities of life and find a balance that works with bipolar treatment and stability. What I am finding is that more often than not, bipolar is an issue that life insurance companies are willing to consider and accept.
There’s needs to be an asterisk by that last paragraph. When I say insurance companies I most assuredly don’t mean every insurance company. Many companies have very conservative underwriting guidelines and their underwriters don’t have the flexibility to say there is a difference between one person with bipolar and another. They have one bipolar bucket and it has the word decline written on it.
Other companies take the route of approving policies but rating them so highly that, if the price doesn’t scare you away, they know that they are over compensated for any perceived risk. It is the third set of companies that we are looking for. We want companies that will look at the following criteria and make a prudent and reasonable judgment as to risk and price.
1. No suicide attempts or bouts with suicidal ideations.
2. No hospitalization in the last 10 years for bipolar, other than for the purpose of diagnosis.
3. A history of being compliant with treatment, both with medications and office visits.
4. A stable job history. This is not to say that you can’t have changed jobs ever. I think I read somewhere that the average person changes jobs every 3-5 years. Inability to keep a job would not be considered stable.
5. A stable family life and functional in society.
6. Not on disability due to bipolar. Disability sort of self defines itself as not being fully stable or functional.
As mentioned, I am finding more often than not that these criteria, even if a little rough around the edges, are doable by large numbers of those who might otherwise be thrown in the decline bucket. There are companies that are willing and eager to write life insurance for you and the rapidly increasing number of clients I have who are diagnosed bipolar is proof.
Bottom line. Don’t tackle this situation without an independent agent. It is that independence that allows us to avoid those decline buckets. Don’t use an agent who can’t intelligently talk to you about your disorder. If they aren’t familiar with it they won’t be successful at shopping it. Don’t (DO NOT) go to your local auto and homeowners agent and expect success. They have a decline bucket the size of the Grand Canyon and aren’t bashful about using it.
July 12th, 2008
