Life Insurance with Depression or Anxiety: What to Expect

If you live with depression or anxiety and are wondering whether life insurance is even an option, the honest answer is that it almost always is. Most people with a mental health diagnosis in Canada are approved, and many are approved at the same rates as anyone else. What an underwriter wants to know is not whether you have ever struggled, but how severe the condition is, how it is being treated, and how stable it has been.

This article is for Ontario adults who have been diagnosed with depression, generalized anxiety, panic disorder or a related condition, whether it was a rough year in your twenties or something you manage every day. We will walk through what underwriters ask, how they classify cases, what it costs when a rating is applied, and how to put your application together so it is assessed fairly. This is not medical advice and we are not clinicians; our job is to explain how insurers make decisions and to shop your case across many of them.

One thing we want to say up front, because we hear the worry constantly: applying for life insurance will not affect your treatment or your job. The information goes to the insurer’s underwriter under privacy rules, and that is where it stays.

Why do insurers ask about mental health at all? Life insurance prices risk over decades. Underwriters have long-run data showing that severe, untreated or unstable psychiatric conditions are associated with higher mortality, partly through suicide risk and partly through associated factors like substance use and physical health. That is the only reason the questions exist.

The same data shows something more useful: for people whose condition is mild, treated and stable, the risk is close to that of the general population. The insurer is trying to sort well-managed cases, which are the vast majority, from the small number that need a closer look.

For a broader picture of the process, our guide to life insurance underwriting covers the mechanics. Here we will focus on what changes when mental health is part of the file.

What underwriters typically ask about depression and anxiety

Whether you apply through a paper form, a tele-interview or an online portal, expect questions in these areas.

• Diagnosis and date. Depression, generalized anxiety disorder, panic disorder, adjustment disorder, postpartum depression and so on. When it started and whether it is ongoing.
• Medications. Which ones, at what dose, for how long, and whether anything has changed in the last year. Stability is the point; a recent switch or increase usually prompts a follow-up.
• Therapy or counselling. Ongoing counselling is viewed positively, as evidence of active management.
• Hospitalizations. Any inpatient psychiatric admission, and how long ago.
• Time off work or school. Disability leave for a mental health reason, and whether you have returned to full-time work.
• Self-harm or suicidal thoughts. Any history of attempts, ideation or crisis-line contact. This is the most sensitive question and the one with the biggest effect on the decision.
• Alcohol and substance use. Because the two often travel together in the underwriting data.
• Other conditions. Sleep problems, weight changes or chronic pain that may be linked.

Underwriters generally look back several years for most items and further for hospitalizations or attempts. If your history is a period of counselling and a low-dose medication, that is the end of the conversation at many insurers.

How cases are typically classified

Insurers do not publish a single rulebook, and every company weighs the factors differently. The table below describes the patterns we see most often. It is a general guide, not a promise of any particular outcome.

Profile	Typical features	Common underwriting result
Mild, stable	Single diagnosis, one medication or therapy alone, no hospitalization, no time off work, stable 12+ months	Standard rates at many insurers; preferred rates possible at some
Moderate	Two medications or a recent change, some time off work now resolved, no hospitalization, symptoms controlled	Standard at some insurers; rating of roughly 25–75% at others
More significant	Hospitalization in the past few years, extended disability leave, multiple medication changes, or a diagnosis such as bipolar disorder	Rating of roughly 50–150%, or a postponement until stable
Recent crisis	Hospital admission, self-harm or medication change within the last 6–12 months	Usually postponed; reassessed after a period of stability
Long-standing severe or unstable	Repeated admissions, ongoing suicidal ideation, active substance misuse	Traditional coverage often declined; simplified or guaranteed issue may still be available

A rating means the insurer accepts you but charges more than standard. In Canada this is usually expressed as a table rating (a percentage added to the standard premium) rather than a flat dollar amount. A postponement is not a decline; it is a request to reapply after a defined period, typically six to twelve months after the last significant event.

Postpartum depression comes up often with new parents shopping for coverage. A single resolved episode, treated and without hospitalization, is generally assessed favourably once you are back to baseline. If you are in the middle of it, waiting a few months and applying once things have settled can produce a better result. Our guide to life insurance for new parents covers the timing question in more detail.

How medications are viewed

People often assume that being on medication counts against them. In practice, underwriters generally see a stable, long-term prescription as a sign of a managed condition. What draws attention is change and escalation: a dose increased in the last few months, a new drug added, or a switch from one class to another, because each of those suggests symptoms are not yet under control.

Some general patterns:

• One SSRI or SNRI at a steady dose for a year or more, working well: usually treated as mild.
• Two or more psychiatric medications, or an antipsychotic or mood stabilizer added to an antidepressant: usually treated as moderate or more.
• Medication for sleep or anxiety on an as-needed basis: generally low impact on its own.
• Recently stopped medication without a doctor’s involvement: can be a concern, because relapse is a risk.

If a medication was prescribed for something other than a mental health condition (some antidepressants are used for pain, migraine or sleep), say so on the application. Underwriters take the prescription record at face value unless you explain it.

What documentation helps your case

The strongest applications we submit for clients with a mental health history share a few things:

1. A clear, consistent timeline. When the diagnosis was made, what treatment followed, when you stabilized. Inconsistency between what you say and what your doctor’s file says is the most common cause of delays.
2. A supportive attending physician’s statement (APS). The insurer will usually order this from your family doctor or psychiatrist. A note that says “stable, compliant with treatment, functioning well at work” carries real weight.
3. Evidence of function. Full-time work, no recent absences, active management. Underwriters read these as protective factors.
4. Time since the last event. Twelve months of stability after a medication change or leave is a common threshold; two years or more after a hospitalization opens more doors.

Do not omit anything. Canadian policies carry a two-year contestability period during which the insurer can void the contract for material misrepresentation, and mental health history is exactly what gets discovered when a claim is reviewed. A disclosed rating is far better than a denied claim. We explain the details in our article on the contestability period.

What it costs with and without a rating

For a healthy non-smoker, indicative monthly premiums for $500,000 of 20-year term life insurance are roughly $25–$38 at age 35 and roughly $32–$48 at age 40. These are illustrative ranges, not quotes; your rate depends on age, health, smoking status, coverage amount and insurer. A full breakdown is in our guide to life insurance costs in Ontario.

If a rating is applied, it scales the standard premium. The table shows what that looks like for the same $500,000, 20-year policy at age 35. Again, illustrative only.

Underwriting result	Indicative monthly premium, age 35 non-smoker
Standard (no rating)	roughly $25–$38
Rated +50%	roughly $38–$57
Rated +100%	roughly $50–$76
Rated +150%	roughly $63–$95

Two things soften this. First, a rating from one insurer often does not exist at another, which is why we quote several. Second, many insurers will review a rating on request after a period of stability, and a term policy can be re-shopped later if your health picture has improved.

If traditional coverage is not available right now

A postponement or decline from a fully underwritten insurer still leaves options.

Simplified issue life insurance asks a shorter list of health questions with no medical exam and no physician’s statement. The questions about mental health are usually limited to recent hospitalization or treatment for suicidal thoughts, so many people with moderate histories qualify. Coverage amounts are lower and premiums higher than fully underwritten term. See our explainer on simplified issue life insurance.

Guaranteed issue life insurance asks no health questions at all. Amounts are small, typically up to $25,000 or so, premiums are high for the coverage, and there is usually a two-year waiting period before the full death benefit applies for non-accidental death. It is a last resort rather than a first choice, but it exists. Details are in our guide to guaranteed issue life insurance.

Group coverage through work is usually issued without individual underwriting up to a set amount; take the maximum available while you sort out individual coverage.

Reapply later. Insurers often set a specific date for reconsideration. Mark it and come back; the file is frequently approved on the second attempt.

A note on critical illness and disability coverage

Mental health history affects these products differently. Disability insurers are more cautious, because mental health claims are among the most common reasons people are unable to work, and a policy may be issued with an exclusion for psychiatric conditions. Critical illness insurance generally does not cover mental illness as a claimable condition, though a mental health history usually has less effect on approval. If you are considering either, read does critical illness insurance cover mental health first, and tell your advisor so the applications are sequenced sensibly.

How Hayes can help

Mental health is the area where insurers disagree with each other the most, and it is where a broker earns their keep. Before we submit anything, we can describe your situation to underwriters at several of the 30+ Canadian insurers we work with, without your name attached, and find out which ones will look at your file most favourably. Then we apply to the right one, help you prepare a clear timeline, and follow up on the physician’s statement so the file does not stall.

Our advice costs you nothing; the insurers pay us. Compare quotes from 30+ Canadian insurers in about 2 minutes, free and with no obligation, or contact us if you would rather talk through your history with an advisor first.