Struggling with mental health? You can still get life insurance. Learn how insurers assess depression, anxiety, and other conditions: plus strategies for approval.
Complete guide to life insurance in Australia covering types, costs, and how to apply
Comprehensive guide to income protection waiting periods: how they work, types, costs, and strategies to choose the right waiting period for your situation
How 15 common medical conditions affect life insurance premiums, underwriting, and coverage in Australia
General Advice Only
Insure Me For Life is Authorised Representative Number 1244847 of Consilium Advice Australia Pty Ltd, Australian Financial Services Licence 246623.
Need to talk to someone right now? This post is general information about insurance underwriting and is not a substitute for support. If you're in crisis or need to talk:
- Lifeline: 13 11 14 (24/7 crisis support)
- Beyond Blue: 1300 22 4636 (24/7 mental health support)
- Suicide Call Back Service: 1300 659 467
- 13YARN: 13 92 76 (Aboriginal and Torres Strait Islander crisis support)
If life is in danger, call 000.
You can get life insurance with a mental health condition. It is not an automatic decline. Thousands of Australians with depression, anxiety, and other conditions successfully obtain coverage each year. What insurers assess is how well-managed the condition is, not the diagnosis itself.
Some sources online suggest any history of depression, anxiety, or psychological treatment results in automatic decline. This is not true. The reality is more nuanced. What insurers care about:
Mental health conditions exist on a spectrum. Someone with situational depression following a life event who responded well to short-term treatment is viewed very differently from someone with treatment-resistant bipolar disorder requiring multiple hospitalisations.
Understanding how insurers assess mental health, and preparing your application accordingly, can mean the difference between decline and approval at reasonable rates.
Mental health conditions are remarkably common in Australia:
These statistics come from Zurich's Cost of Care Volume 2 (2023) research. Mental health conditions are so prevalent that insurers cannot simply decline everyone who has experienced them. Insurers have developed sophisticated underwriting processes to assess individual risk.
Why the advised channel matters here: APRA's June 2025 quarterly life insurance data shows death-claim acceptance rates of 97.2% via advised distribution channels vs 92.9% via non-advised channels (APRA Life Insurance Claims and Disputes Statistics, June 2025). The 4-percentage-point gap is meaningful for any complex application. It matters especially for mental-health applications, where disclosure framing, evidence packaging, and insurer selection shape the outcome.
For detailed cost and prevalence data on specific mental health conditions, visit our Mental Health conditions hub.
When you disclose a mental health condition, underwriters evaluate several key factors:
Not all mental health conditions carry the same underwriting weight:
Generally more accepted:
Requires careful assessment:
Often challenging:
Insurers view treatment positively. It shows you're actively managing your condition. They'll assess:
Any psychiatric hospitalisation significantly impacts underwriting:
This is often the most important factor. Insurers want to know:
Someone working full-time with well-controlled anxiety presents a very different risk profile than someone unable to work for 18 months due to depression.
The length of time since your last significant episode or treatment change matters greatly:
Prevalence: 1 in 6 women, 1 in 8 men lifetime risk
Recovery statistics:
Typical underwriting outcomes:
Underwriting outcomes for depression vary considerably by insurer, episode history, stability period, current treatment, and functional capacity. We don't publish a fixed loading table because insurer appetite and individual factors move outcomes more than a generic table can capture. The general pattern we see is:
A pre-assessment through a broker is the only reliable way to gauge insurer appetite for your specific situation before submitting a formal application.
Key success factors:
For detail on depression costs and impact, see our Affective Disorders condition page.
Prevalence: 1 in 3 women, 1 in 5 men lifetime risk
Recovery statistics:
Typical underwriting outcomes:
Insurer outcomes for anxiety disorders vary by diagnosis, severity, stability period, and functional capacity. The general pattern across panel insurers:
Key success factors:
For detail on anxiety costs and statistics, see our Anxiety Disorders condition page.
Bipolar disorder presents more challenges than depression or anxiety. Coverage is still possible.
Typical underwriting outcomes:
Bipolar disorder outcomes vary substantially by type (Bipolar I vs Bipolar II), stability period, hospitalisation history, and medication compliance. The general pattern:
Key success factors:
PTSD underwriting depends heavily on the cause and current functioning:
Typical underwriting outcomes:
PTSD underwriting outcomes depend on trauma type, treatment completion, time since the event, and current functional capacity. General pattern:
Key success factors:
Our specialist advisers work with mental health cases daily. Get honest assessment of your insurability before formal application.
Get Free AssessmentWhen you apply with a mental health history, be prepared to provide detailed information. Gathering this documentation before you apply speeds up the process and shows organisation.
Diagnosis details:
Treatment history:
Hospitalisation:
Crisis history:
Functional impact:
Current status:
Depending on your condition severity, insurers may request:
Pro tip: Request a "medical report for insurance purposes" from your GP before applying. Having this ready can reduce underwriting time from weeks to days.
When you apply matters almost as much as what you disclose. Strategic timing can significantly improve your outcome.
Many insurers use 12 months as a common benchmark for stability. The exact period varies by insurer and condition. This typically looks like:
If you're close to this threshold, waiting a few months before applying can significantly improve your outcome.
This distinction is crucial. Mental health affects these two insurance types very differently.
Life Insurance assesses mortality risk. Will you die prematurely?
Income Protection assesses morbidity risk. Will you be unable to work?
You may experience very different outcomes for each cover type:
Scenario: Well-controlled depression, stable 18 months, on SSRI
| Cover Type | Likely Outcome |
|---|---|
| Life Insurance | Commonly approved with no or minor loading |
| TPD Insurance | Commonly approved with a loading; mental health exclusion possible |
| Trauma Insurance | Commonly approved with mental health conditions excluded |
| Income Protection | Typically attracts a loading and a mental health exclusion |
If your primary concern is protecting your family with a death benefit:
If Income Protection is essential:
Full, honest disclosure is essential. This cannot be emphasised enough.
Non-disclosure is the single most common reason insurance claims are denied. When you make a claim, insurers have the right to:
If they discover you didn't disclose relevant information, they can:
You must disclose:
"I stopped taking medication, so I don't have depression anymore"
"It was just work stress, not real depression"
"That was 10 years ago and I'm fine now"
"My psychologist visits were for coaching, not mental health"
Disclosure doesn't mean presenting yourself in the worst possible light. You can:
A licensed broker experienced with mental health applications can help present the history accurately while maintaining full disclosure. Free guidance available.
Talk to an AdviserIf possible, work toward the best possible mental health profile before applying:
Compile before applying:
A broker experienced with mental health cases can:
Some brokers offer anonymous pre-submission to insurers (Stage 3.5 approach):
Sometimes the best outcome is approval with exclusions:
Underwriting approaches vary significantly between insurers:
Example: One insurer may decline someone with bipolar disorder. Another may offer terms with a material loading.
Decline isn't necessarily permanent. You have options:
Request written explanation from the insurer. Was it:
Based on the decline reason, take action:
Different insurers have different policies. What gets declined at one may be accepted at another.
If fully underwritten cover isn't available:
A broker experienced with declined cases can:
Yes. Antidepressants are commonly prescribed in Australia. Insurers assess based on the underlying condition, stability, and how well controlled you are on medication. Many people on stable SSRI therapy are approved with minimal or no loading.
Seeing a psychologist or psychiatrist must be disclosed. It's generally viewed positively. It shows you're actively managing your mental health. What matters more is the underlying condition and your current functioning.
Yes. Disclose significant mental health conditions from any time in your life. Conditions from many years ago that have been resolved are typically viewed much more favourably than recent issues. An episode of depression at 16 that resolved with treatment and hasn't recurred in 15 years would likely have minimal impact on a 31-year-old's application.
It's possible but more challenging than Life Insurance. Many people with stable, well-controlled anxiety or depression are approved for Income Protection, though often with:
Once your policy is in force, you cannot be declined or have your premium increased due to changes in your mental health (except for stepped premium increases based on age). This is why getting insurance while you're stable is so important. It locks in your coverage.
Not necessarily. Being stable on medication is often viewed more favourably than:
If you're stable on medication with no plans to change, that can be a good time to apply.
Most insurers require at least 12 to 24 months since discharge before they'll consider an application. Some may require longer for multiple hospitalisations or involuntary admissions. The longer ago the hospitalisation and the better your subsequent stability, the more favourably it will be viewed.
No. Applying for or holding private life insurance does not affect your eligibility for NDIS, Disability Support Pension, or Medicare. These are separate systems. Your insurance policy and any benefits paid out under it (death benefit, terminal illness benefit, TPD payout) are generally not assessed as income for Centrelink purposes in the same way as employment income. The rules are complex and case-specific. Lump sums can affect asset tests. For specific advice on how an insurance payout would interact with your benefits, speak to a qualified financial counsellor or contact Services Australia directly. Free financial counselling is available through the National Debt Helpline on 1800 007 007.
Insurer assessment of mental health is strictly confidential and cannot be shared with employers. Insurers operate under the Privacy Act 1988 and Insurance Contracts Act 1984. Your application is shared only with reinsurers, the insurer's medical officer, and (with your specific consent) any treating practitioners providing reports. It is not shared with your employer. Disclosure on an insurance application is also not the same as making a workers compensation claim or recording the condition in a workplace incident system.
If you've been concerned about applying because of perceived employment stigma, this is a separate concern from underwriting. The Fair Work Act 2009 protects employees from discrimination on the basis of mental disability. Insurance disclosure does not create a record visible to your employer.
Yes, ADHD does not sit on any automatic-decline list. Insurers assess it the same way they assess the other conditions on this page: what matters is the treatment picture (whether medication and management are stable), functional capacity (working or studying normally is strong evidence), and whether other conditions sit alongside it, since ADHD commonly co-occurs with anxiety or depression and the combination is assessed as a whole. A stable, well-managed presentation is treated very differently from a recent diagnosis with unsettled treatment. Outcomes vary insurer by insurer, so comparing across several insurers matters, and every diagnosis and prescription must be disclosed regardless of how minor it feels; an undisclosed condition is a far bigger claim-time risk than a disclosed one.
Yes. Some brokers work regularly with mental health disclosures, and the value is insurer selection rather than any special access: underwriting appetite for the same history genuinely differs across insurers, so knowing which insurer treats a given presentation most favourably changes the outcome. A broker in this space can also test insurer appetite informally before a formal application goes on your record, which matters because a formal decline must itself be disclosed on future applications. The strategies section above sets out what that engagement looks like in practice. Whether you use a broker or apply yourself, the fundamentals are identical: full disclosure, evidence of stability, and comparison across more than one insurer.
Mental health is one of many conditions insurers assess. It has a distinct underwriting profile because prevalence is high, the impact on Income Protection claims is significant, and the assessment relies more on stability narrative than on biomarkers. For a wider view of how the panel handles other categories of pre-existing condition, see:
The brokerage works across 9 panel insurers (AIA, Zurich, TAL, OnePath, ClearView, NEOS, Encompass, Acenda, Futura). Insurer appetite for mental-health applications varies meaningfully across this panel. Pre-assessment lets your broker identify which insurers are showing willingness for your specific profile before a formal application. This avoids a declined application appearing on your record.
Mental health conditions are common, affecting millions of Australians. Life insurers have developed sophisticated approaches to assessing mental health risk. Many people with depression, anxiety, and other conditions successfully obtain coverage.
The key factors that determine your outcome are:
If you have a mental health condition and need life insurance:
Protection for your family is often still achievable. It may just require more careful navigation.
Our specialist advisers understand mental health underwriting for life, TPD, and income protection cover. Get honest advice on your insurability and the best path forward.
Start Free AssessmentImportant Information
Cost estimates are from Zurich Cost of Care Volume 2 research and represent averages. Your actual costs may vary.
Insurance coverage recommendations are general in nature. This is general advice only and does not take into account your individual circumstances. Speak with a licensed adviser to determine appropriate coverage for your situation.
Insure Me For Life | AR 1244847 of Consilium Advice Australia Pty Ltd | AFSL 246623