Posts filed under 'bipolar disorder'
I’ve often mentioned that getting approval and good rates on life insurance is a matter of the right agent in combination with the right company. The other key to success is an application that is properly thought out and presented.
A case in point is a client we just got approved who had applied through another agent before coming to us. Her application was declined off hand by a company that assumed she had bipolar disorder because of a medication she was taking that is quite often used with bipolar, Lamictal. This company declined her without asking for medical records because they assumed she wasn’t being forthcoming concerning her mental health issues.
On her application she had indicated treatment for depression. Had the company taken her at her word they would have discovered that, in fact, she was diagnosed with and treated for depression and attention deficit disorder, not bipolar. Had the agent understood that the medication she was taking is commonly used for bipolar, he could have simply put on the application “Client’s use of Lamictal is not for Bipolar disorder”. Wrong agent! Poorly thought out application!
The other thing that wasn’t done that is a must anytime there are health issues is that the agent didn’t ask for trial quotes before submitting the application. Had that been done he would have discovered that the medication was going to be a question, easily clarified up front. Then, with trial quotes in hand the application would have flown.
Bottom line. The client now has the coverage she wanted, at a good rate. It may not be rocket science, but it does matter who your agent is and how the application is presented.
July 31st, 2008
I’ve mentioned many times that the large internet agencies are well equipped to pursue and sell the younger age, completely healthy market. It is, for them, an uncomplicated and easy way to keep the cash flowing.
It is much quicker and easier than dealing with older clients that have health issues or for that matter, any age client with serious health, physical or mental, concerns.
We have been very successful by focusing on just the opposite market of the larger internet agencies. We specialize in finding and placing the best possible rates for people with issues ranging from bipolar disorder to heart disease to diabetes and epilepsy. In writing about these specific topics before I have often noted that if you have one of these issues and are looking for the best possible rates, you need to find an independent agent and avoid both the large internet agencies and agencies that specialize in auto and homeowners insurance.
Simply put, the large agencies don’t want to invest the time it takes to find you the best rates. You local Farmer’s Insurance agent doesn’t have the products or the underwriting power to get the job done for you.
Bottom line. If you are in less than perfect health, your time and effort is best spent talking with independent agents who understand your health issues and know what companies to go to and which to avoid.
July 28th, 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
As we’ve discussed many times, good life insurance rates are available if you have bipolar disorder if you meet certain criteria, underwriting guidelines. For the purposes of underwriting, while the companies may call them guidelines, assume they are rules. You are simply not going to slide by sort of meeting most of the criteria.
If I could sum up all of the criteria, it would be something like well controlled, or stable. But rather than a summary because I want people to know exactly what works and what doesn’t work going in, another review is in order. Remember that while these guidelines are pretty specific to bipolar disorder, they can be used for any mood or mental disorder including depression, anxiety disorders and attention deficit disorder.
1. No suicide attempts ever and no notations of suicidal thoughts in the last 10 years in your medical records.
2. No hospitalization for bipolar in the last 10 years other than for the purposes of diagnosis.
3. Compliant and proactive with prescribed treatment. No taking it when you feel like you need it and not taking it when you feel like you don’t. I guarantee you that it doesn’t say “as needed” on your prescription.
4. Stable family and work life. Underwriters understand that people change jobs, and unfortunately marriages don’t always work out, but inability to hold a job is different than changing jobs. A marriage not working out is different than one that is devastated by out of control bipolar.
5. You need to be able to exhibit social functionality. You can’t be on disability for bipolar. Being on disability means you are not able to function normally.
6. No drinking problems.
These criteria don’t preclude even the majority of people with bipolar disorder. To the contrary, from all I’ve learned in working with the bipolar community these criteria probably describe the majority. We have been able to successfully find the coverage that people from CEO’s to stay at home moms have needed in order to protect their families.
Bottom line. Not all companies will approve you even if you meet those criteria. Some will decline you just on the mention of bipolar disorder. That is just a quirk of the industry and the reason you should seek the assistance of an independent agent. An agent with experience in mood disorders will know what to ask, where to shop it and how to get it approved.
June 26th, 2008
ADHD (Attention Deficit Hyperactivity Disorder) is more commonly associated with children, and for good reason. Raising any child is a challenge. Even the best of them is a handful. Having raised a son with ADHD I can tell you that it’s kind of like fireworks, firecrackers in particular.
A normal child is like a normal firecracker. Occasionally the fuse burns all the way down and there is a pop. A child with ADHD is kind of like the way I used to light firecrackers, one bundle of 100 at a time. A little chaotic to say the least and just when you think it’s over, a pop here, a bang over there….
About 60% of children with ADHD carry some of the symptoms into adulthood. ADHD in adults is one of those things that is all over the life insurance underwriting map. Some companies will cut and run they way they do with bipolar disorder or chronic depression. Other companies shrug it off as the mortality non issue that it is.
Like other mood disorders, the companies that are going to give ADHD a fair hearing are really looking for how it impacts your day to day life. Do you have a stable family life? Do you have a stable work history? Are you compliant with your recommended treatment?
I’ve had several ADHD clients that are managers of businesses, owners and CEO’s of companies. One of the CEO’s I worked with contended that someone with ADHD that learns to channel that extra energy and spontaneity can use it to their business advantage. The insurance company we worked with on his coverage apparently agreed as they approved him at their best rate class.
Bottom line. No magic message in this post. Just one more chance to drive home the point that fair rates on life insurance are available through a good independent agent as long as whatever mood disorder you have is stable and controlled.
June 17th, 2008
There must be a couple of million people in the US licensed to sell life insurance. If you take in the giant internet mega agencies, all of the independent agents, and all of the captive agents (work for just one company), the possibilities for purchasing life insurance become staggering.
Put in context, there are probably as many, if not more doctors. Does that mean that no matter what is wrong with you, there are 2 million choices for a place to go for treatment? I’m thinking not. If you have a cold, a cardiologist is likely not going to see you, and if you’ve had a heart attack, it’s highly unlikely that your general practitioner won’t refer you to a specialist. There are those unfortunate times when GP’s think they know the answer to everything and attempt to treat serious illness in house, but those are rare.
Life insurance is one of those areas where the millions of choices doesn’t mean you have millions of appropriate choices. For the average very healthy person under 50 probably any independent agent or agency can do a good job of finding a low rate with a good company. As I’ve mentioned before, young healthy buyer beware though. Even though the mega agencies on the internet can find competitive rates, they have a bad habit of signing lucrative bonus contracts to push the bulk of their business toward a certain company. The good news is that the company is generally competitive. The bad news is that, as I’ve noted in so many previous posts, competitive doesn’t mean best. An independent agent doesn’t do the volume and therefore we are never offered these type of contracts. Speaking for myself, I place every case with the best possible price and product for my client. Seems like the right thing to do.
One other note on our perfect health client. Stay away from your auto and homeowner’s agents. You will be outrageously overcharged for life insurance because it isn’t what they do. Sure, they have a product and they are licensed, but having a license doesn’t mean you know what you’re doing and having a product doesn’t mean the price isn’t way too high.
But I want to make a very important distinction. Just like the doctor scenario, if you have some medical issue, a knowledgeable independent agent is where you want to go. We are the specialists in the life insurance business. Just a quick list of what I am talking about will help separate the GP’s from the specialists. If you have diabetes, Hepatitis C, heart disease, a history of cancer, a seizure disorder, mood disorders such as depression, anxiety or bipolar, and on and on. These are issues that it is hard for the average agent to provide good service on. These are issues that will get automatically declined with most property casualty companies (auto, homeowners).
How do you know you’ve called the right person or stepped in the right door? All insurance agents make money from the culmination of a sale, the placing of a policy in force. They all want your business and the truth is that most of them are struggling. There is a real tendency in the business for agents to take on business that they have no idea what to do with, just in hopes that it works out. It usually doesn’t. You know you’ve found the right agent if they show a knowledge of your particular issue by the questions they ask. If they don’t ask questions they don’t have the information it takes for them to come through for you. If they don’t seem to know, for instance, the difference between type 1 diabetes and type 2 diabetes, they don’t have any business working for you.
Bottom line. Before you commit to applying through an agent, be confident that they know what they’re doing. In my next post I will reveal the secret weapon for weeding out the BSer’s from the straight shooters. It works every time, guaranteed.
May 28th, 2008
I was providing some information on the underwriting of bipolar disorder a few days ago on a bipolar forum when the question came up, “Why is bipolar disorder an issue with life insurance”.
Being in the life insurance business I am keenly aware that most people believe life insurance underwriting is an over reaction to whatever their particular ailment might be, from high blood pressure to cancer. I have shared more than once that I have that same reaction to the rates I pay. I understand why I pay the rates I do. I just happen not to agree with the logic that got them there.
I would like to address bipolar disorder straight on and answer that question. I have said many times that a person who admits to being bipolar is likely to be declined off hand, without any further study or thought on the part of the insurance underwriter. The reason, although I believe unfair, is the link between bipolar disorder and suicide. I have seen the argument raised in bipolar forums that suicide shouldn’t be an issue because insurance companies don’t have to pay for death due to suicide. There is where part of the rub lies. Insurance has to pay for death due to suicide after 2 years, 1 year in a few states. So, whether the suicide issue is valid or not, it is fair for insurance companies to consider.
With that in context, let’s look at the upside of all of this information. First, the majority of suicides that occur, happen during the early phases of diagnosis of bipolar, if not before the diagnosis. In general once a person is diagnosed and under treatment, stability begins to set in and, while life may never be completely normal, in many cases it is.
From a life insurance agent standpoint, my job becomes something like a door to door salesman. I sell something that people would probably really want, but the knee jerk reaction is to slam the door without even hearing about what I have to sell. With life insurance underwriters it is the same thing when shopping a case involving bipolar. I have to get them over the knee jerk reaction long enough to tell the story. When they hear that my client is a classic well controlled, stable member of the community who not only hasn’t attempted suicide, but certainly doesn’t intend to, the open the door a little further. When I explain that they are compliant with treatment and their only hospitalization for bipolar was when they were diagnosed, they invite me in and we discuss how we can work together to help the person get what they want while the insurance company gets exactly the same.
Bottom line. The answer to the question about why bipolar is an issue is that any health or mental impairment is an issue. I can’t escape that fact and unfortunately neither can my clients. What can be done is to minimize the impact that bipolar has on the outcome. If you use the right independent agent who uses the right companies, bipolar will get the same fair underwriting that anyone else would get.
May 26th, 2008
I don’t know that I was shocked, but certainly took note the other night when, unless my memory is as bad as my wife says, I saw an advertisement for bipolar disorder medication during prime time.
The medication is Abilify and I am not posting this to endorse it or make any claim at all about its’ effectiveness. I will offer one article just so anyone that hasn’t heard about it has a base to start their investigation from. I did want to note that, just like hearing for the first time that life insurance is attainable for someone with bipolar disorder, there is a sort of “out of the closet” feeling to seeing it recognized as something that can be talked about openly.
The other end of the scale which I doubt we’ll see was America’s fond embracing of “ED” problems and the associated medications. Depression and medications for it have been advertised for years without going over the deep end. It has helped to raise awareness of depression and anxiety disorders. I hope that it can do the same for bipolar disorder.
We continue to experience success in placing reasonably priced life insurance cases for folks with well controlled mood disorders, whether anxiety, depression or bipolar. This is huge. If there was some way to quantify the number of people who are declined annually just for mentioning these types of issues on their application I have not doubt it would be huge. Staggering. And the crime (although it’s not really a crime) is that many companies will simply decline these cases off hand without getting medical records or any additional background information.
What we’ve found is that the few reasonable companies that employ the few reasonable underwriters in the business are actually doing their job. They are underwriting rather than offering knee jerk opinions, or buckling to a board of directors who have laid out a clear agenda of not insuring anyone who isn’t perfect in every way. The real blessing is that there is reasonable out there and it can be obtained.
Bottom line. We’ve had great success given a few parameters. Obviously it would be a case of adverse selection to offer good rates to those who are truly on the edge, hanging on to life by a frayed thread. But for those who have a history of keeping it together, being compliant with medication and treatment, and maintaining stable family and work lives, the door is open.
May 20th, 2008
This is a stressed out world we’re living in and it would be highly unlikely that you don’t know someone suffering from either anxiety or depression, and not too unlikely that the someone could be you. The more pressure the world exerts, the more likely that our coping mechanisms are going to need some help.
From a life insurance underwriter’s point of view, if the anxiety or depression is mild to moderate and a person is compliant with treatment and stable, rates as good as preferred are not out of the question. I have run into more and more people who are treated for both, but again, given the criteria above an underwriter would not likely pile up on a person due to “multiple impairments”.
I read an article just recently that suggested that rather than anxiety and depression being two distinct disorders, that in many it seems that the two impairments are really just separate manifestations of the same disorder. There appears, in fact, to be a genetic link between the two.
As we’ve discussed on a number of occasions, no matter what the impairment, from depression to anxiety to bipolar disorder, life insurance can still be attainable if your life can be characterized as stable. I’ve taken a bit of a beating over one of the other underwriting criteria that goes along with mood disorders, the fact that you can’t be on disability due the impairment. I’ve had several people cry foul on that guideline, but let’s be real. If you are functional and stable, you shouldn’t need to be on disability.
The best demonstrators of functional and stable are family and work life, and no recent hospitalization due to the impairment. Attempted suicide really throws a damper on the whole thing.
Bottom line. A good independent agent knows what to ask and how to present it to provide you with the best possible chance of getting affordable life insurance. Don’t try this with your local State Farm agent unless you feel like racking up a decline or two before you finally find approval.
May 19th, 2008
I was recently contacted by a person who had been declined by an insurance company (pretty much an every day occurrence here). This person had been treated for depression for quite a while, but successfully treated.
The person was leading a normal, stable life. Family, job, the whole thing has gone on without a hitch for the past several years. The hitch (for the insurance company) was that a few years ago this person’s doctor switched her to a medication generally only used for bipolar disorder. Not that it’s not effective for depression, because it is, but this person being on Lamictal led the insurance company to decline the application without ever pulling medical records. A bipolar drug was enough for them to freak out and go screaming into the dark.
It is this underwriting mindset that leaves so many people in this country believing that they are uninsurable when, with the right independent agent and the right companies, that conclusion could not be any further from true.
I think to a very large degree it is the average life insurance agent out there that is the problem. They know how to pitch the product and fill out applications. When they are lucky enough to find a completely healthy client, place a policy and get paid, they believe they are in fact a life insurance agent.
It is this same lame excuse for an agent who will pitch the product and fill out the application and submit it, not knowing what question Lamictal might raise, that really messes up the business and gives a lot of people the idea that life insurance companies are unfair. Anytime there is a chance that an underwriter might do the unexpected, the case should be shopped. Lay it all out there and let the underwriter with his or her head screwed on right win the day. Take the business where they have already heard the details and know that there is more to the story than what appears on the cover.
Bottom line. Depression, anxiety and bipolar are all issues that, as long as they are well controlled and properly shopped, can produce very positive results for the person wanting fair rates on their life insurance. How do you know if the agent you are dealing with is the right agent? How do you know they have a clue? Ask them questions about your issues and see if they understand them. Quiz them about their success rate on those kind of issues. Don’t just listen to the pitch, throw it against the wall and see if it sticks.
May 9th, 2008
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