Life Insurance for Veterans

Life insurance for veterans with PTSD

An Army veteran and his wife said they were “shocked and saddened” when they learned he was denied life insurance because of his history of post-traumatic stress and depression.

“There have to be a lot of veterans with this diagnosis,” said the wife. She asked to remain anonymous as they continued the process of getting insurance through another company that specializes in life insurance for service members and veterans.

The denial letter they received from USAA cited his history of depression, anxiety, post-traumatic stress disorder, chronic pain and asthma. The Army veteran said a USAA representative emphasized his PTSD and depression in explaining the denial.

Insurers don’t talk about a particular individual’s situation for privacy reasons, but they offer general information about how they make their decisions. And comparing companies’ policies is often like comparing apples and oranges.

The veteran said one difference was applying for an individual term policy with USAA. Our life insursance for veterans with ptsd program can get you an approval with another company in a group term policy situation. The risk is spread over a broader category of people in group term policies, and the underwriting requirements aren’t as strict. He also applied for a lesser amount of coverage initially.

Can you qualify for commercial life insurance for veterans if you have PTSD? It depends on each individual’s circumstances and the insurance company’s policies, according to officials at four companies that are among a number that specialize in providing life insurance to the military community.

“The great majority of members with histories of PTSD are offered life insurance, many at our very best price,” said Alex Gairo, a spokeswoman for USAA. “As with so many health issues ranging from diabetes to depression, degree and duration are questioned.

“The applicant’s health history is reviewed to determine the following: how severe are the symptoms, the date of the onset of symptoms, how necessary are the medications to achieve effective control, and does the applicant need counselling/psychotherapy? All these factors weigh in on the decision of the applicant.”

“Talk to other insurers and us. We all have different underwriting rules,” advised Mike Meese, a retired Army brigadier general who is the chief operating officer at AAFMAA.

At AAFMAA, “we probably, as a percentage, have more people with PTS that we underwrite and insure than any other condition,” said Meese. The company looks at each individual’s case, including the treatment, the medications, and the doctor’s diagnosis. He said the applicant might pay a higher rate depending on the situation, but it’s usually cheaper than Veterans Group Life Insurance.

When he left the Army in 2008, the veteran didn’t sign up for Veterans Group Life Insurance, which is available to those insured under the Servicemembers Group Life Insurance (SGLI) program.

“Unfortunately, he missed his window to get insurance under VGLI,” his wife said. “We were both in our 20s, and we’re not thinking about this. We now have two kids.” That changed their thinking about their family’s financial situation if something happened to their husband.

Under VGLI, service members have one year and 120 days from the date of separation from the military to apply for the insurance. If service members use VGLI within 240 days after the break, they will not need to answer health questions.

Since being turned down for insurance, the couple has applied for coverage elsewhere and initially used for a lesser amount of coverage. They were accepted by another company specializing in scope to the military community and are now trying to increase the amount of coverage. The wife said the rate is competitive with the life insurance she has as a federal employee.

Insurers also look at whether the applicant has a VA disability rating and cut for space: The Army veteran was honest about his PTSD when he applied for life insurance. That honesty is essential, all the company officials said. “You need to be honest,” Meese said. “Most people in the military are honest, and there aren’t any problems in most cases.”

“The decision is made based on the risk. That’s how the insurance industry works,” said Mike Reyna, a retired Air Force colonel and president of the Military Benefit Association.

“A high percentage of veterans have a PTSD diagnosis,” he said. “That’s usually disclosed in the application process. But there are no automatic disqualifiers. Like other medical issues, there are levels of severity.”

Navy Mutual has insured people with PTSD, but again, it depends on the individual circumstance and the whole health picture, said Stephen Pietropaoli, a retired Navy admiral chief operating officer at Navy Mutual.

Post-traumatic stress itself is not disqualifying, he said. Still, the applicant may be denied or have to pay more for insurance when the PTS is more severe and if they are on medication for other physical injuries, for example.

Navy Mutual tries to come down on the side of approving the application. “We exist to provide life insurance for veterans who serve and their families,” he said. But if they don’t assess the risk properly, it could affect the company’s financial strength. “We have to be around for 30, 40, 50 years from now to pay the claims,” he said.

He and others advise applying for commercial life insurance before transition or after leaving the military. That gives the option of using VGLI when you’re still eligible.

And like this veteran and his wife learned, it’s wise to shop around to find options.

Source:  https://www.militarytimes.com/2016/05/23/does-ptsd-affect-your-ability-to-get-life-insurance/