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Post Traumantic Stress Disorder (PTSD) life insurance, critical illness cover and income protection

The facts about getting life insurance with Post Traumantic Stress Disorder (PTSD)

Post-Traumatic Stress Disorder (PTSD) is a life-changing and difficult condition to live with. Symptoms include re-living flashbacks, fatigue, self-harm, hyperarousal and anger or aggression towards other people, including family members. Treatments for the condition include therapy or counselling, psychotherapy, and medications including phenelzine, paroxetine and sertraline.

Post Traumatic Stress Disorder (PTSD) can affect applications for life insurance, critical illness cover or income protection. At Iam Insured we can help make sure that you apply to the right insurance provider to protect your family, home or business.

What does Post Traumatic Stress Disorder (PTSD) life insurance cost?

Underwriters will consider the following when reviewing an application for Post-Traumatic Stress Disorder (PTSD) life insurance, critical illness cover and income protection:

  • The date you were diagnosed
  • Symptoms and their severity
  • Medications you may be taking
  • Treatment undertaken
  • Any suicidal thoughts or attempts

Your premiums for Post Traumatic Stress Disorder (PTSD) life insurance will also depend on:

  • Sum assured (£’s)
  • Term of cover (years)
  • Type of policy (e.g. Family, Mortgage, Whole of Life etc.)

Post Traumatic Stress Disorder (PTSD) life insurance rates/ratings

Rates for any non-standard cover such as Post Traumatic Stress Disorder (PTSD) life insurance will vary from one insurance provider to another depending on their underwriting philosophy. Insurance providers use a risk based scale to determine the amount you will pay for your cover which uses a ‘percentage loading’ or ‘£’s per mille loading’. All insurance companies have their own underwriting criteria which will also change over time, so can be difficult to predict unless you regularly speak to them.

Percentage (%) loading for Post Traumatic Stress Disorder (PTSD) life insurance

A percentage loading basically applies a % to your standard premium based on the levels of risk calculated for your own circumstances. Your percentage loading will apply a multiple to your Post Traumatic Stress Disorder (PTSD) life insurance premium, which will be based on your health at the time of your application. You should also know that some insurance providers have different maximum levels to others so some are prepared to take on higher risks (e.g. 250% or 400%).

EXAMPLE:

Basic premium
% loading
Final premium
£20.00 50% £30.00
£20.00 100% £40.00
£20.00 150% £50.00
£20.00 200% £60.00
£20.00 250% £70.00

Per mille loadings for Post Traumatic Stress Disorder (PTSD) life insurance

You may also find that a ‘per mille loading’ could be applied to your Post Traumatic Stress Disorder life insurance premiums, but this is more rare and only tends to be used for more severe conditions such as Cancer. A ‘per mille loading’ will be an additional amount that is applied to your premiums which is based on the amount of cover you are applying for (e.g. £2 per thousand £’s of cover). The other difference with a ‘per mille loading’ is that it can be applied for the whole term of your Post Traumatic Stress Disorder (PTSD) life insurance policy or for a period of time from the start of your policy (e.g. 2, 3, 4 or 5 years).

Another potential outcome when applying for a non-standard cover such as Post Traumatic Stress Disorder (PTSD) life insurance, critical illness cover or income protection is for an ‘exclusion’ to be applied to your policy. You may also find that certain additional benefits could be excluded such as Total and Permanent Disability, Waiver of Premium or Guaranteed Insurability.

In some cases it is possible to get Post-Traumatic Stress Disorder (PTSD) life insurance fairly easily and at standard rates, but this will depend on other health issues you may currently have, how severe your symptoms are and whether or not you have experienced suicidal thoughts, or attempted suicide. Underwriters will consider the following:

  • How long have you suffered from Post-Traumatic Stress Disorder (PTSD)
  • Counselling or therapy you may have had
  • Medications prescribed and treatment undertaken
  • Suicidal attempts and thoughts

Your Post-Traumatic Stress Disorder (PTSD) life insurance premiums could be slightly higher if your symptoms are more severe. In the case of more serious suicidal attempts, you may need to apply to a specialist insurer. Iam Insured can help you find the right insurer.

It is difficult to say how much cover you need when you are applying for a Post-Traumatic Stress Disorder (PTSD) life insurance, critical illness cover or income protection policy. There are however some simple rules that you can follow which will give you a good idea for how much cover you need before you apply. You should also be aware that a Post Traumatic Stress Disorder (PTSD) life insurance, critical illness cover or income protection policy could increase after underwriting to reflect any additional risks of claim, so affordability may be a consideration.

  • Mortgage amount (£’s)
  • Outstanding debt (e.g. Loans, second charge, credit cards and other)
  • Dependants
  • Spouse or partner
  • Income (after tax)
  • Assets (e.g. car, house, business etc.)

Critical illness cover is slightly different to life insurance in the sense that it is designed to provide a lump sum payment if you are diagnosed with a critical or serious illness. Most people relate this type of cover to Cancer, which is the biggest reason for claims for critical illness cover. Things to consider are:

  • Income (after tax)
  • Mortgage payments (annual)
  • Cost of living (annual)
  • Any other possible costs (e.g. medical treatment or adaptations)

You may be able to get Post-Traumatic Stress Disorder (PTSD) critical illness cover if your symptoms are mild, or if there has been a long period of time since your initial diagnosis. It is worth bearing in mind that if you are still receiving treatment, on medication or seeking counselling that your premiums might increase. In certain circumstances where the symptoms are more severe, you may also find that Post-Traumatic Stress Disorder (PTSD) critical illness cover could be declined or postponed for a period.

Income protection is a very flexible product with a lot of options and variables, so you need to consider your own circumstances before you consider this type of policy. If you work, and especially for people who are self-employed, a Post Traumatic Stress Disorder (PTSD) income protection policy can be a valuable product to give you peace of mind if anything happens to you. Some of the main aspects to consider are:

  • Monthly income (after tax)
  • Mortgage/rent payments
  • Debts (other)
  • Cost of living

You should be aware that it may not be possible to get a Post Traumatic Stress Disorder (PTSD) income protection policy depending on your symptoms. If your symptoms are mild or in cases where the diagnosis was several years ago, you may be able to get a policy. Insurance underwriters will also want to know whether you have had much time off work in recent years to assess the level of risk involved for your application. You can speak to one of our team of income protection experts who will be able to tell you whether you can have this type of cover, and we do not charge for our advice.