Depression: Severity is key to rate class
Depression is the one mental condition that can really put a damper on your life insurance rate, and for good reason: When this psychological condition becomes severe, it can lead to suicide.
"Depression and mental disorders in general are among the more common health conditions that you see in all age groups," says Goldstein.
"There are many individuals who are very favorably written and even could be preferred, depending on the degree, the severity and how well it is managed. On the other end of the spectrum, if you had someone who had severe, major depression, lots of hospitalizations, lots of suicide attempts, that individual would not be rated as favorably, and possibly might not even be insurable."
Bloom adds, "We also would not consider individuals with dementia such as Alzheimer's, people who have recently completed rehabilitation for drug/alcohol use, or someone currently residing in a hospital/nursing home or facing major surgery."
Life insurers also will typically refuse coverage to individuals who are HIV-positive.