Will My ADHD Diagnosis Affect My Life Insurance Rates?
When you’re diagnosed with ADHD, many things can change in your life: the way you study and work, your relationship with family members, and the types of medications you take on a daily basis. But there may be another change that you don’t expect: higher life insurance rates because of your ADHD diagnosis.
However, it’s important to remember that all policies are different, so what applies to one company may not apply to another company or policy type (e.g., term vs whole life).
What is life insurance and why do you need it?
Life insurance is a contract between you and the insurer in which they agree to provide you with money when you die so that your dependents can continue to live comfortably.
Insurance companies use different criteria to determine how much life insurance coverage will cost, but generally speaking, healthy people are able to purchase less expensive policies than those who have pre-existing medical conditions.
For example, a person with high blood pressure may be charged an extra $100-$200 per year on their premiums. If you have been diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) there is no specific evidence that this diagnosis alone would affect your rates more than any other pre-existing condition.
Why do I need life insurance?
It’s important to think about all the people who rely on you and what they might need if something were to happen to you.
Life insurance can protect against loss of income, expenses incurred by having someone stay at home with children, funeral costs and other final expenses, college tuition for surviving children, and other unforeseen circumstances such as illness or disability. Hence, from a financial security perspective, life insurance isn’t just a luxury, but a very part of the necessity.
The four main types of policies
There are four main types of life insurance policies: term, whole life, universal, and variable.
- Term life insurance policies are the most common type of policy. You purchase a term policy for a specific amount of time such as 30 years, 20 years or 10 years and the insurance company pays a benefit to your beneficiary at the end of that time period if you die during the policy’s duration.
- Whole life policies are permanent in nature and offer you coverage for your entire lifetime.
- Universal policies combine life insurance with investment options to provide both death benefits and a return on investments.
- Variable life insurance has flexible premiums which can be adjusted up or down at any time depending on your financial needs and age.
Can someone with ADHD get approved for a life insurance policy?
Life insurance may be more difficult to obtain if you have ADHD because of the difficulty in accurately diagnosing the condition. On top of that, many people with ADHD also suffer from anxiety and depression which can lead to them being more at risk for suicide.
If you are diagnosed with ADHD, be sure to speak to your life insurance advisor about your medical history and any medications you take.
Please note that it is possible for someone with ADHD to get approved for a policy; it just depends on the severity of the diagnosis and what type of plan they need.
Get in touch with a Trust Life advisor today to know more about life insurance plans you can get with ADHD.