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13 Minute read
Originally published: August 8, 2023
In today’s fast-paced world, ensuring your loved ones’ financial security through life insurance has become paramount. But what happens when you pair this essential financial tool with a common neurodevelopmental disorder like ADHD? Many individuals diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) find themselves navigating a maze of questions and misconceptions when it comes to securing a life insurance policy. Is ADHD viewed as a risk by insurers? Will premiums skyrocket? Or worse, can a diagnosis lead to policy denial?
In this blog, we’ll demystify the relationship between ADHD and life insurance, offering insights, tips, and the information you need to confidently secure the right policy for your unique circumstances.
In this article:
Attention-Deficit/Hyperactivity Disorder (ADHD) is a neurodevelopmental disorder that affects both children and adults. It is characterized by persistent patterns of inattention, hyperactivity, and impulsivity, which are more frequent and severe than typically observed in individuals at a comparable level of development.
Key characteristics of ADHD include:
ADHD is usually diagnosed in childhood, often in conjunction with disruptive behavior disorders. Symptoms may persist into adulthood and can cause significant functional impairments in academic, family, and social settings. The exact cause of ADHD is unknown, but it is believed to involve a combination of genetic, environmental, and neurological factors.
Treatment for ADHD often includes a combination of medication, psychotherapy, behavior management strategies, and educational accommodations or interventions. Medications such as stimulants are often effective in managing ADHD symptoms, but they must be used under the supervision of a healthcare provider due to potential side effects.
Psychotherapy, including cognitive-behavioral therapy, can help individuals with ADHD learn to manage their symptoms and cope with the disorder. Behavioral management strategies can also help reduce problematic behaviors and increase desired behaviors.
Education interventions can help students with ADHD succeed acadically by offering extra support, accommodations, or specialized education plans.
While ADHD can be challenging to manage, with appropriate treatment and support, individuals with ADHD can lead successful and fulfilling lives.
Background: Roshan, a 28-year-old mechanical engineer from Oakville, was diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) when he was 20. As someone newly engaged and looking forward to starting a family, he wanted to ensure the financial stability of his loved ones and thus sought to obtain a life insurance policy.
Challenge: While Roshan had no other significant health issues, he was on a combination of medications for ADHD, including a stimulant and a non-stimulant, to manage his symptoms. Moreover, he had switched medications a couple of times in the past two years due to side effects. He was concerned that his ADHD, combined with his medication history, might affect his insurance premiums or even his insurability.
Approach: Roshan approached an experienced insurance broker, who specialized in assisting clients with pre-existing conditions.
Results: Three insurers provided quotes. The first insurer quoted a premium 20% higher than standard rates, citing the recent changes in medication as a potential concern. The second offered standard rates but required a two-year review period. The third, after reviewing Roshan’s comprehensive medical report and noting his overall health and stable professional life, offered him a preferred rate.
Conclusion: Roshan was able to secure a life insurance policy with preferred rates, ensuring the financial safety of his future family. This case underscores the importance of transparency, thorough medical evaluations, and the value of working with knowledgeable brokers when navigating the life insurance landscape with ADHD.
Yes! Obtaining life insurance is possible even after being diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) or Attention Deficit Disorder (ADD). However, your diagnosis could influence the terms of your policy and the premiums you’re expected to pay.
The specific stipulations attached to a life insurance policy vary based on the insurance provider and the nuances of your personal situation. This includes factors such as the intensity of your ADHD or ADD, your age, and any other health conditions you might have.
Transparency is key when seeking life insurance with ADHD or ADD as a pre-existing condition. Most insurance providers will request detailed medical records and additional data about your diagnosis during the application process.
It’s essential to recognize that life insurance policies tailored for those with pre-existing conditions might come with certain exclusions or specific terms. Additionally, the premiums might be steeper compared to those for individuals without any pre-existing medical conditions.
Before finalizing any policy, it’s crucial to meticulously go through its terms. Ensure that you’re fully aware of any potential exclusions or conditions and are satisfied with the premium rates and overall policy details.
ADHD severity can be classified as mild, moderate, or severe, and symptoms affect each person differently. Insurance providers will pay special attention to the severity of your condition as well as the medications you use. Individuals with mild, well-managed instances may even be eligible for preferred rates.
Here’s a general view of how life insurance companies might see ADHD:
Mild to Moderate ADHD : Typically, if a person’s ADHD is well-managed through medication and/or therapy and doesn’t significantly interfere with their daily life or ability to work, the condition will have minimal impact on their life insurance premiums. They may qualify for standard or even preferred rates depending on the rest of their health and lifestyle profile.
Severe ADHD: If a person has severe ADHD, which could include frequent changes in employment, difficulty maintaining personal relationships, or other issues such as substance abuse, the insurance company may consider this a higher risk. This could result in higher premiums or, in some cases, a denial of coverage.
ADHD with Comorbid Conditions : ADHD often coexists with other conditions such as depression, anxiety, or substance use disorders. If an individual has a coexisting condition along with ADHD, this could increase their perceived risk to the insurer and could potentially impact their premiums or insurability.
Medication Impact: Certain medications used to treat ADHD could potentially influence life insurance rates. For instance, if the medications present side effects that might impact the individual’s health or if the individual’s medical record shows frequent changes in medication, this might raise concerns for the insurer.
Non-Disclosure: It’s crucial for applicants to disclose their ADHD diagnosis during the application process. If it’s discovered later that an applicant did not disclose their condition, the insurance company may increase the premiums, cancel the policy, or deny a claim.
Lifestyle and Control: Life insurance companies will also consider how well an individual manages their ADHD. This could include regular doctor visits, adherence to treatment plans, stable employment, and a healthy lifestyle. Good control and management of the condition can help reassure insurers and possibly lead to more favorable rates.
During the underwriting process, an applicant’s approval and risk class are established. The price of your coverage is ultimately determined by your risk class. Additionally, a huge factor is whether you were diagnosed with mild, moderate, or severe ADHD.
ADHD Severity in Adults
| Classification | Description |
|---|---|
| Mild | Adults with predominant symptoms of inattention, distractibility, agitation, and forgetfulness have minimal impact on their daily functioning. |
| Moderate | Adults with a number of the following symptoms: inattentiveness, restlessness, distinct short mood shifts, emotional overreactivity, disorganisation, impatience, co-morbid moderate depression, marital instability, or occupational performance difficulties. |
| Severe | Adults with motor hyperactivity and inattentiveness in addition to explosive temper, relationship or work problems, impulsive buying, motor vehicle accidents, alcohol or substance misuse, depression, conduct or personality disorder, or arrest history. |
ADHD Severity in Children
| Classification | Description |
|---|---|
| Mild | Children with the predominantly inattentive subtype of ADHD, a normal IQ (> 70), minor behavioural issues, little aggression, no diagnosis of oppositional defiant disorder (ODD) or conduct disorder (CD), and treatment with a single medication. |
| Moderate | Children with the hyperactive and impulsive subtypes, a normal IQ (>70), learning disabilities, behavioural difficulties and/or aggressiveness, including oppositional defiant disorder (ODD), and the use of up to two medications. |
| Severe | Children who meet the criteria for moderate ADHD and exhibit significant aggression or violence, conduct disorder (CD), personality disorder, or substance abuse. |
Given the varied ways ADHD manifests in individuals, underwriters won’t hastily judge based solely on an ADHD diagnosis. Instead, they thoroughly assess several elements.
Key factors they consider are:
Being diagnosed with ADHD doesn’t automatically exclude you from securing life insurance. In reality, many insurers are open to offering policies to healthy adults who have ADHD under control, especially if there’s no associated history of depression. Opting for the Standard or Preferred risk categories might be feasible. To ensure you land the most cost-effective rates, especially in the Preferred class, it’s wise to compare different insurance offers.
When evaluating life insurance applications, insurers not only consider the diagnosis but also any ongoing treatments, including medications. For individuals with ADHD, the type and dosage of medication they’re on can indeed influence an insurer’s decision and potentially affect premium rates.
While ADHD medications can influence the underwriting process, it’s essential to understand that every life insurance company has its own criteria. Just because one company may view a particular medication or dosage as a higher risk doesn’t mean all insurers will. It’s beneficial for individuals on ADHD medications to work with knowledgeable brokers or agents who can guide them to the companies most likely to offer favorable terms.
When you pursue a life insurance policy and reveal a diagnosis of ADD, the insurance company will likely delve deeper into your medical background and current health status. They might inquire about:
Further, while some questions might appear tangential to your ADD diagnosis, they could be scrutinized more intensively than in standard life insurance applications. Examples include:
