Mental Nervous Disorders and Disability Insurance: What You Need to Know
When clients apply for disability income (DI) insurance, one of the most frequently misunderstood underwriting topics is how mental nervous disorders are treated. At dibrokerWest, we work closely with advisors to simplify this part of the process—helping you navigate how these conditions impact underwriting and policy design.
What Are Mental Nervous Disorders?
“Mental nervous disorders” is an insurance industry term that includes a wide range of psychological, emotional and psychiatric conditions. Common examples include:
- Depression
- Generalized anxiety disorder
- Bipolar disorder
- Post-traumatic stress disorder (PTSD)
- Obsessive-compulsive disorder (OCD)
- Schizophrenia and psychotic disorders
- Eating disorders
- Substance abuse (depending on diagnosis and treatment)
Though clinical language has evolved, this term still appears in disability insurance contracts and is critical to understand when discussing coverage limitations.
Why It Matters for DI Coverage
At dibroker West, we often explain to advisors that underwriting decisions related to mental health history can vary significantly between carriers—and small details can make a big difference in the final offer. Here’s how:
Underwriting Outcomes Vary
Carriers scrutinize mental health histories closely. Underwriters will review any history of mental health treatment closely. Factors they evaluate include:
- Date of diagnosis
- Severity or Frequency of episodes
- Medication or therapy history
- Hospitalizations
- Whether symptoms are stable and under control
Potential results:
- A policy with a 24-month mental nervous limitation
- A full exclusion of mental nervous conditions
- A possible postponement or decline if the condition is recent or ongoing
Standard 24-Month Limitation
Even healthy applicants may receive a policy with a two-year benefit limit on disabilities related to mental health. However, some carriers allow this limitation to be removed if there’s no history—something dibrokerWest can help you secure.
Exclusions Are Common
For more complex mental health histories, some carriers may issue a policy excluding all mental nervous claims. In these cases, we help identify alternative solutions, including layered coverage strategies or access through guaranteed standard issue programs.
Transparency is Critical
We always advise full disclosure during the application process. Carriers review medical records, prescription histories and prior therapy or counseling visits, so accuracy from the start can prevent surprises later.
Tips for Applicants and Advisors
- Start the conversation early. If you have a history of mental health treatment, discuss it with your advisor to determine the best carrier and product.
- Choose the right carrier. Some insurers are more lenient than others in how they underwrite mental health histories.
- Explore guaranteed issue or group policies. In cases where mental health conditions may make traditional underwriting challenging, alternatives like employer-sponsored or guaranteed standard issue plans may offer a path forward.
- Work with a specialist. Disability insurance underwriting can be nuanced. A knowledgeable advisor or brokerage agency can help navigate carrier preferences and design coverage that protects your income—even with a mental health history.
How dibrokerWest Helps
Navigating mental health underwriting isn’t one-size-fits-all—and that’s where dibrokerWest brings value:
- We know which carriers are more flexible with mental nervous histories.
- We simplify the applications process, even for clients with complex records.
- We can help structure alternatives like group carve-outs or GSI programs
- We advocate for your client to get the best possible offer – without guesswork.
Final Thoughts
Mental health challenges are common—and so is the need for income protection. At dibrokerWest, we believe disability insurance should reflect both realities. Whether you’re working with a client managing anxiety or navigating coverage for a client with a past diagnosis, we’re here to help you deliver smart, competitive solutions.
Want to review a case? Submit it through our Advisor Portal Quote Request Wizard or reach out directly—we’re always here to help you and your clients protect what matters most.
