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How Does Anxiety Affect Buying Life Insurance?

August 16, 2022
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

Having an anxiety disorder can affect your life insurance rates, but it doesn’t automatically disqualify you.

Many individuals who deal with an anxiety diagnosis still apply for life insurance and are accepted for coverage. The good news is that not all insurance companies underwrite health conditions like anxiety in the same way. Some treat it more favorably than others. Quotacy is here to dig through the different life insurance companies to help you find life insurance coverage to protect your loved ones.

Many health conditions impact your life insurance eligibility and potential costs. Learn more about life insurance and pre-existing conditions in our guide.

Buying Life Insurance with an Anxiety Disorder

Anxiety disorders are quite common. Our agents have had a lot of success helping people with anxiety get life insurance coverage.

If you have diagnosed anxiety, your best chances of getting affordable life insurance is to apply through a broker, like Quotacy. Brokers are not tied to one life insurance company and are able to shop the market.

We want you to get approved and will work hard to help you get coverage. Start the process by getting a free life insurance quote or keep reading for more in-depth information about life insurance and anxiety.

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

Applying for Life Insurance If You Have Anxiety

One of the biggest concerns life insurance underwriters have when evaluating an applicant with anxiety is drugs and/or alcohol abuse. If you are self-medicating with drugs or alcohol or there is a history of misuse, life insurance companies will tread very lightly. These situations will be looked at on an individual basis as to whether coverage can be offered.

Your best chances of getting approved for life insurance with a current anxiety diagnosis or history of is to apply online at Quotacy. As an independent broker, your dedicated agent can take your case and shop it to the different top-rated life insurance companies we work with.

Not all life insurance companies underwrite, or evaluate, medical conditions in the same way. Anxiety being one of them. The company you choose to apply to can make all the difference.

The Cost of Life Insurance with an Anxiety Disorder

The cost of a life insurance policy is determined by the risk class you’re assigned. Risk classes are assigned during the underwriting process.

Life insurance underwriters evaluate an applicant’s risk by reviewing their medical records, results of the life insurance medical exam (if you’re required to get one), and the application. The less risky you are, the better your rate.

Life Insurance Risk Categories

  • Preferred
    • The preferred risk category includes Preferred Plus and Preferred. An applicant in this category is healthy and the insurance company isn’t taking much risk by insuring them. Applicants in these categories pay the lowest life insurance rates.
  • Standard
    • The standard risk category includes Standard Plus and Standard. Applicants deemed standard plus are generally in good health, but a specific medical issue or lifestyle factor prevents them from being given a preferred rate. The standard risk class is for people who are of average health.
  • Table-rated
    • Life insurance companies want to be able to offer coverage to as many people as they can. Sometimes, however, applicants carry more risk than the insurance company is comfortable with. The insurance company balances this risk by requiring the applicant to pay an increased rate. Table ratings run alphabetically or numerically depending on the company. The higher the table rating, the higher the rate. For example, if you get a table rating of “A” or “1”, you pay 25% more than the standard rate. If you have a “B” or “2” rating, you pay 50% more, and so on.

Different life insurance companies offer different risk classes depending on their underwriting guides and evaluations. This is why it’s imperative to shop around if you have a medical condition, like an anxiety diagnosis. Your rates may vary drastically from one company to another.

Consider the real-life client example below.


John Smith* is a 52-year-old non-smoker applying for a $500,000 20-year term life insurance policy. He was diagnosed with GAD (generalized anxiety disorder) with a history of panic attacks and a nervous breakdown due to a stressful work environment. He is no longer at that job.

John is now doing well with treatment consisting of prescription medication (Prozac, Wellbutrin, Klonopin) and cognitive-behavior therapy.

When his Quotacy agent anonymously shopped John’s case to our insurance companies, their offers varied considerably.

Some carriers wouldn’t even offer him life insurance coverage. Another would only offer him Table 3. However, one company was more lenient and offered Standard.

See the table below to see how risk class affects the price you pay for life insurance.

John decided to go with the company that offered him Standard and his Quotacy agent helped get his policy active.

Estimated Monthly Costs of a $500,000 20-Year Term Policy for a Non-Smoking 52-Year-Old Male Based on Risk Class
Risk Class Monthly Premium
Preferred Plus $83.65
Preferred $99.37
Standard Plus $137.22
Standard $158.83
Table 1 $198.54
Table 2 $238.25
Table 3 $277.94

*Client name and some personal details have been changed.

This is just one example of many clients we have helped get life insurance coverage. Your individual factors will determine if you can get coverage and at what cost.

It’s also important to note that age impacts the cost of life insurance. Referencing John’s example above, if he was buying life insurance at 35 instead of 52, his proposed rates would be much lower.

Estimated Monthly Costs of a $500,000 20-Year Term Policy for a Non-Smoking 35-Year-Old Male Based on Risk Class
Risk ClassMonthly Premium
Preferred Plus$20.73
Standard Plus$34.00
Table 1$49.30
Table 2$59.16
Table 3$69.02

Start the process by running quotes online here at Quotacy. Our quoting tool can give you an idea of what life insurance costs, but cannot factor in how anxiety will affect the pricing. There are just too many variables for online quoting tools to calculate.

To find out exactly how much life insurance will cost you, simply run a quote and apply online and your Quotacy agent will set realistic expectations after reviewing your application. We’ll walk you through the process of buying life insurance and can help answer any questions along the way.

Note: Life insurance quotes used in this article are accurate as of August 19, 2022. These are only estimates and your life insurance costs may be higher or lower.

Watch the Life Insurance and Anxiety Video


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