Understanding Your Life Insurance Options with an Eating Disorder

Life insurance is an important part of financial planning, providing protection for you and your loved ones in the event of unexpected death. But what happens when you or a loved one has an eating disorder, such as anorexia or bulimia nervosa? It can be challenging to navigate the world of life insurance when you have a pre-existing medical condition, but it’s important to understand your options. In this blog, we will discuss the impact of an eating disorder on life insurance, what to expect during the application process, and how to find the right life insurance policy for you or your loved one. Whether you are looking for protection for yourself or for a loved one, this guide will provide you with the information you need to make an informed decision about life insurance with an eating disorder.

Meet Sarah, a 32-year-old marketing professional who has struggled with an eating disorder for the past 10 years. Despite being in stable recovery, Sarah is worried that her eating disorder will make it difficult for her to find affordable life insurance coverage.

Step 1: Researching life insurance options

Sarah starts her search by researching different types of life insurance policies, including guaranteed issue, simplified issue, and term life insurance. She learns that standard life insurance may be an option for her if she is in stable recovery and has a positive prognosis.

Step 2: Working with a life insurance broker

Sarah decides to work with a life insurance broker who specializes in pre-existing conditions to find the best coverage for her needs. During the initial consultation, Sarah is transparent about her eating disorder and treatment history, and the broker explains the different policy options available to her.

 Step 3: Underwriting process

The broker helps Sarah apply for a traditional life insurance policy, which requires a medical exam and health questionnaire. Sarah’s doctor provides a letter of reference, detailing her stable recovery and positive prognosis. During the underwriting process, Sarah is asked about her eating disorder, including its onset, duration, and treatment history.

 Step 4: Approval and policy selection

After the underwriting process is complete, Sarah’s policy is approved and she is offered several different options to choose from. She selects a 20-year term life insurance policy with a $500,000 death benefit and an affordable premium.

 Step 5: Policy purchase

Sarah purchases the policy and begins paying the premiums. She is relieved to have found a policy that provides her with adequate coverage and peace of mind, despite her eating disorder.

In this article: 

• Overview of Eating Disorders
  • Types of Eating Disorders
• The Impact of an Eating Disorder on Life Insurance
• Ways To Increase the Likelihood That a Life Insurance Applications Will Be Accepted
• Key Factors To Consider When Choosing a Life Insurance Policy
• Can Life Insurance Premiums Be Higher for Those With Eating Disorders?
• How Do Different Types of Life Insurance Policies, Such As Term Life or Whole Life, Impact Individuals With Eating Disorders?
• Other Life Insurance Options
• Finding the Right Life Insurance Policy
• Frequently Asked Questions (FAQs) about Life Insurance with an Eating Disorder

Overview 

An eating disorder is a serious mental health condition that is characterized by persistent and disturbed eating behaviors. Eating disorders can take many forms, including anorexia nervosa, bulimia nervosa, binge eating disorder, and others. Anorexia nervosa is characterized by excessive weight loss, a distorted body image, and a persistent fear of gaining weight. Bulimia nervosa is characterized by binge eating followed by purging, fasting, or excessive exercise to compensate for the calorie intake. Binge eating disorder involves eating large amounts of food in a short amount of time and feeling a lack of control over the eating behavior. Eating disorders can have serious physical and mental health consequences and are often accompanied by other mental health conditions such as depression and anxiety. Early identification and treatment of eating disorders are essential for recovery.

Types of Eating Disorders 

There are several types of eating disorders, including:

• Anorexia nervosa: characterized by a distorted body image, fear of weight gain, and restrictive eating patterns leading to significant weight loss.
• Bulimia nervosa: characterized by binge eating episodes followed by purging, fasting, or excessive exercise to compensate for calorie intake.
• Binge eating disorder: characterized by frequent episodes of eating large amounts of food in a short amount of time, feeling a lack of control over the eating behavior, and often accompanied by feelings of shame and guilt.
• Other specified feeding and eating disorders (OSFED): a category for eating disorders that don’t meet the criteria for other defined eating disorders but still cause significant distress and impair daily functioning.
• Pica: characterized by the consumption of non-food items such as paper, hair, or dirt.
• Rumination disorder: characterized by regurgitating and re-chewing food after meals.

It’s important to note that eating disorders are serious mental health conditions that require prompt and comprehensive treatment. Early recognition and intervention can increase the chances of recovery.

The Impact of an Eating Disorder on Life Insurance

 Eating disorders, such as anorexia and bulimia nervosa, can have a significant impact on a person’s life and overall health. And when it comes to life insurance, a history of an eating disorder can make it more challenging to get coverage. However, it’s important to understand that this does not mean you cannot get life insurance. The impact of an eating disorder on life insurance will depend on the severity of the disorder, the length of time you have had the disorder, and your current health status. 

When you apply for life insurance, you will be asked to provide information about your medical history, including any history of hospitalization, treatment, or diagnosis of an eating disorder. The insurance company will use this information to assess the risk involved in providing coverage. If the insurance company determines that you are at a higher risk for death, you may be charged higher premiums or be declined coverage altogether.

What to Expect During the Application Process

 The life insurance application process can be a bit intimidating, especially if you have a history of an eating disorder. But by understanding what to expect, you can make the process smoother and less stressful. 

Here are some of the steps involved in the life insurance application process for individuals with an eating disorder:

• Medical Exam: Some life insurance companies may require a medical exam before issuing coverage. The exam typically includes a blood and urine test, as well as measurements of your height, weight, blood pressure, and pulse. 
• Medical Records: The insurance company will also likely request your medical records, including any hospitalization, treatment, or diagnosis of an eating disorder. It’s important to provide accurate and complete information about your medical history.
• Underwriting: The insurance company will use the information you provide to assess your risk and determine the right coverage and premium for you. If you have a history of an eating disorder, the underwriting process may take longer than usual. 
• Premiums: If the insurance company approves your application, they will offer you coverage at a specific premium. Premiums for individuals with an eating disorder may be higher than for individuals without the condition.
• Review and Approval: After you receive the offer of coverage, you will have the opportunity to review the policy and make sure it meets your needs. If you are satisfied with the coverage, you will sign the policy and make your first premium payment.
• Follow-up: Once you have life insurance coverage, it’s important to keep the insurance company informed about any changes to your health, such as a relapse or recovery from an eating disorder. These changes may affect your coverage and premium.

By understanding what to expect during the life insurance application process for individuals with an eating disorder, you can prepare yourself and make the process as smooth and stress-free as possible.

Ways To Increase the Likelihood That a Life Insurance Applications Will Be Accepted

 Individuals with eating disorders can improve their chances of getting approved for life insurance by following these steps:

• Seek Treatment: The first and most important step is to seek treatment for their eating disorder. A consistent and effective treatment plan can improve an individual’s health and increase their chances of getting approved for life insurance.
• Wait to Apply: It is best to wait until the individual has been in stable recovery for a significant period of time before applying for life insurance. This can help demonstrate to insurers that the individual’s eating disorder is under control and that their health has improved.
•  Be Honest: When applying for life insurance, it is important to be transparent about the individual’s eating disorder and their treatment history. Lying or omitting important information can result in a denial of coverage or a void policy.
• Work with a Specialist: Consider working with a life insurance broker who specializes in helping individuals with pre-existing conditions, including eating disorders. These brokers have experience navigating the life insurance market and can help find the best policy for the individual’s needs.
• Maintain Good Health: Maintaining good overall health, including managing the eating disorder, can help increase the individual’s chances of getting approved for life insurance. This can include following the treatment plan, regularly seeing a doctor or therapist, and engaging in healthy habits such as exercise and healthy eating.
• Shop Around: Not all life insurance companies have the same underwriting criteria and some may be more lenient towards individuals with eating disorders. It is important to shop around and compare multiple life insurance quotes to find the best option.

Key Factors To Consider When Choosing a Life Insurance Policy

When choosing a life insurance policy for someone with an eating disorder, there are several key factors to consider:

1. Type of Policy: Consider the type of life insurance policy that is best for the individual’s needs. Term life insurance provides coverage for a specified period of time, while whole life insurance provides coverage for the individual’s entire life.
2. Premium Cost: The cost of life insurance premiums can vary significantly based on the individual’s health and age. It is important to compare quotes from multiple life insurance companies to find the best premium for the individual’s needs.
3. Policy Benefits: Consider the policy’s death benefit, which is the amount paid to the beneficiaries upon the individual’s death, as well as any additional benefits, such as a cash value component or accidental death benefit.
4. Underwriting Process: The underwriting process is the process by which life insurance companies determine the individual’s risk and premium rate. It is important to understand the underwriting criteria for each life insurance company and how they may view an individual with an eating disorder.
5. Exclusions and Limitations: Some life insurance policies may have exclusions or limitations that could impact the individual’s coverage. For example, some policies may exclude death due to a pre-existing condition, such as an eating disorder.
6. Financial Strength: Consider the financial strength of the life insurance company. It is important to choose a company with a strong financial rating to ensure that the policy will pay out as promised.
7. Accessibility of Coverage: Consider whether the policy is guaranteed issue, meaning it does not require a medical exam or health questions, or if it is medically underwritten, meaning the individual will need to undergo a medical exam and answer health questions.
8. Privacy: Privacy is a concern for many individuals with eating disorders. It is important to choose a life insurance company that respects the individual’s privacy and keeps their health information confidential.

Can Life Insurance Premiums Be Higher for Those With Eating Disorders?

Yes, life insurance premiums can be higher for individuals with eating disorders. The premium cost is determined by a variety of factors, including the individual’s age, health, and lifestyle. For individuals with eating disorders, the underwriting process may consider their current and past health history, including their eating disorder, as well as their current treatment plan and prognosis.

 If an individual with an eating disorder has a history of severe health complications or a less stable prognosis, their premium cost may be higher due to the increased risk to the life insurance company. On the other hand, if the individual has been in stable recovery for a significant period of time and has a positive prognosis, their premium cost may be closer to that of a standard policy.

 It is important for individuals with eating disorders to be transparent about their condition and treatment history when applying for life insurance. By working with a life insurance broker who specializes in pre-existing conditions or shopping around for the best policy, individuals with eating disorders can find coverage that is affordable and meets their needs.

How Do Different Types of Life Insurance Policies, Such As Term Life or Whole Life, Impact Individuals With Eating Disorders?

The type of life insurance policy chosen can impact individuals with eating disorders in different ways. Here is a comparison between term life insurance and whole life insurance for individuals with eating disorders:

 Term Life Insurance: Term life insurance provides coverage for a set term, such as 10, 20, or 30 years, and pays a death benefit if the insured individual dies during the term. For individuals with eating disorders, term life insurance may be a more affordable option as it is based solely on the individual’s age, health, and lifestyle at the time of the policy’s inception, rather than taking into account their long-term health history.

 Whole Life Insurance: Whole life insurance provides lifelong coverage and has a savings component in addition to the death benefit. For individuals with eating disorders, the higher premiums associated with whole life insurance may be a barrier, as the underwriting process takes into account their long-term health history. However, some whole life insurance policies may offer more flexibility for individuals with pre-existing conditions, such as the ability to lock in a premium for a set period of time.

 It is important for individuals with eating disorders to carefully consider their options and work with a life insurance broker who specializes in pre-existing conditions to find the best coverage for their needs. Whether choosing term life or whole life insurance, the goal is to find a policy that provides adequate coverage at an affordable cost.

Other Life Insurance Options

Guaranteed Issue Life Insurance: Guaranteed issue life insurance is a type of policy that does not require a medical exam or health questionnaire. It is an option for individuals with pre-existing conditions, such as eating disorders, who may have difficulty finding coverage through a standard policy. The downside of guaranteed issue life insurance is that it tends to have higher premiums and lower death benefits.

 Simplified Issue Life Insurance: Simplified issue life insurance is a type of policy that requires a brief health questionnaire, but not a full medical exam. It is a good option for individuals with eating disorders who want more coverage than guaranteed issue life insurance but are unable or unwilling to undergo a full medical exam.

Regardless of the type of policy chosen, it is important for individuals with eating disorders to be transparent about their condition and treatment history when applying for life insurance. By working with a life insurance broker who specializes in pre-existing conditions or shopping around for the best policy, individuals with eating disorders can find coverage that is affordable and meets their needs.

Finding the Right Life Insurance Policy 

Finding the right life insurance policy can be challenging, especially when you have an eating disorder. It’s important to work with a knowledgeable agent who can help you understand your options and find the best coverage for you. When looking for life insurance, you should consider the following:

• The type of life insurance: There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a set period of time, while permanent life insurance provides coverage for your entire life.
• The coverage amount: You should choose a coverage amount that meets your needs and provides financial protection for your loved ones.
• The premium: The premium is the amount you will pay for life insurance coverage. It is important to find a policy that fits your budget.
• The exclusions: You should understand what is not covered under the policy, such as death from suicide, self-harm, or eating disorders.

While a history of an eating disorder can make it more challenging to get life insurance, it is possible to find coverage. It’s important to work with a knowledgeable agent, provide accurate information about your medical history, and understand your options to find the right life insurance policy for you or your loved one.

Frequently Asked Questions (FAQs) about Life Insurance with an Eating Disorder

Find a solution for what you’re looking for

Life insurance with an eating disorder is crucial in providing financial security for both the individual and their loved ones in case of an unexpected death. Having an eating disorder can impact life insurance coverage and premium, but seeking treatment and working with a specialist can have a positive effect. Obtaining the right policy can provide peace of mind and ensure that loved ones are taken care of financially. Protect Your Wealth can help you get it by guiding you through the process of buying disability insurance and determining whether you may require individual disability insurance coverage.

To schedule a consultation about your income protection goals, or if you have any questions about insurance in Ontario or Canada, please contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia and Alberta  including areas such as Ottawa, London, Lethbridge, and Burnaby.