Insurance with Depression or Anxiety NZ: How to Apply | QuoteHub
By QuoteHub Editorial Team · Updated 2025-12-15
Getting Insurance with Depression or Anxiety in NZ: A Practical Guide
Depression and anxiety are the most common mental health conditions in New Zealand. According to the Ministry of Health, roughly one in five New Zealanders will experience a mental health condition at some point in their lives, and anxiety and depression account for the vast majority of those cases. In the year to June 2025, approximately 619,000 adults experienced high or very high psychological distress.
If you are one of them, or have been in the past, you may be wondering whether you can still get life insurance, income protection, or health insurance. The answer, in most cases, is yes. But the terms you receive will depend on your specific circumstances, which insurer you apply with, and how you approach the application.
This guide covers what to expect, how to handle disclosure, and practical strategies for getting the best possible outcome.
How Common Is This Problem?
Depression and anxiety are not rare or unusual conditions. They are among the most frequently treated conditions in New Zealand primary care. Hundreds of thousands of Kiwis take antidepressants or anti-anxiety medication at any given time.
This matters for insurance because insurers are well accustomed to assessing applicants with these conditions. It is not an automatic barrier to cover. Underwriters see depression and anxiety on applications every day, and the majority of applicants with managed mental health conditions do receive some form of cover.
The challenge is that insurers need to assess the risk that a mental health condition will lead to a future claim, particularly for income protection and health insurance. Depression and anxiety are the leading drivers of income protection claims in New Zealand, accounting for approximately 32% of all claims. That claims history shapes how underwriters approach new applications.
What Insurers Ask About Depression and Anxiety
When you apply for insurance in New Zealand, the application form will include detailed questions about your mental health history. These typically cover:
- Diagnosis. Have you ever been diagnosed with depression, anxiety, or another mental health condition?
- Medication. Are you currently taking, or have you previously taken, any medication for a mental health condition? What medication, and for how long?
- Treatment history. Have you seen a psychologist, psychiatrist, or counsellor? When, and for how long?
- Hospitalisations. Have you ever been hospitalised or attended an emergency department for a mental health condition?
- Time off work. Have you had any time off work due to a mental health condition? How long?
- Severity indicators. Have you experienced suicidal thoughts or self-harm?
- Current status. Is the condition currently stable? When was your last episode?
The insurer will also typically request a report from your GP to verify the information you have provided and to get a clinical picture of your history.
The depth of these questions can feel intrusive, but they serve a practical purpose. The underwriter is trying to distinguish between someone with a mild, well-managed condition and someone with a severe or unstable condition, because the risk profile is very different.
Likely Outcomes by Severity
Not all depression and anxiety is treated equally by insurers. The underwriting outcome depends heavily on how severe your condition is, how recently it was active, and how well it is managed.
The table below provides a general guide. Individual insurers vary, and your specific result may differ.
| Severity | Typical Profile | Likely Underwriting Outcome |
|---|---|---|
| Mild, well-managed | Single episode of mild depression or anxiety, resolved with short-term treatment. Stable on low-dose medication or off medication entirely. No time off work. No hospitalisations. | Standard terms or small premium loading (e.g. 25% to 50%). Some insurers may apply a mental health exclusion to income protection only. |
| Moderate | Recurring episodes or ongoing condition managed with medication and/or therapy. Some time off work in the past. No hospitalisations. Currently stable. | Exclusion for mental health claims (particularly on income protection), or a premium loading. Life cover and trauma cover may still be offered at standard or near-standard terms. |
| Severe or recent | Recent hospitalisation, significant time off work, multiple medications, active symptoms within the last 12 months, or history of suicidal ideation. | Deferral (asked to reapply in 12 to 24 months once stable) or decline. Some cover types may still be available with exclusions. |
Key point: A loading means you pay a higher premium. An exclusion means you have cover, but claims related to mental health conditions are excluded. A deferral means the insurer wants to see a longer period of stability before making a decision. A decline means the insurer will not offer cover at this time.
It is important to understand that a decline from one insurer does not mean every insurer will decline you. Underwriting guidelines differ between companies, and an experienced adviser can identify which insurer is most likely to offer reasonable terms for your situation.
How Each Insurance Type Handles Depression and Anxiety
Different types of insurance products treat depression and anxiety differently, because the risk they present varies by product.
Life Insurance
Life insurance is generally the easiest product to obtain with a history of depression or anxiety. This is because life insurance pays out on death, and mild to moderate depression or anxiety does not significantly increase mortality risk in most cases.
Typical outcome: Most applicants with depression or anxiety will receive life cover at standard terms or with a modest loading. Severe cases involving hospitalisation or suicidal ideation may face a deferral or loading, but outright declines for life cover on mental health grounds alone are uncommon.
Income Protection Insurance
Income protection is the hardest product to obtain with a mental health history. This is because depression and anxiety are the number one reason people claim on income protection. Insurers are understandably cautious.
Typical outcome: A mental health exclusion is the most common result for applicants with a history of depression or anxiety. This means your policy will pay out if you cannot work due to a physical injury, cancer, or another illness, but it will not pay out if you cannot work due to a mental health condition. In some cases, you may receive cover with a loading instead of an exclusion, particularly if your condition has been stable for several years.
Trauma (Critical Illness) Insurance
Trauma insurance pays a lump sum on diagnosis of specified critical illnesses such as cancer, heart attack, or stroke. Depression and anxiety are not themselves covered events under trauma policies, so a mental health history typically has minimal impact on trauma cover.
Typical outcome: Most applicants with depression or anxiety will receive trauma cover at standard or near-standard terms. Severe cases may see a small loading.
Health Insurance (Private Medical)
Health insurance covers the cost of private medical treatment, including some mental health treatment depending on the policy. This means mental health history is relevant to underwriting.
Typical outcome: A pre-existing condition exclusion for mental health treatment is common. This means your health policy will cover you for surgery, specialist appointments, and other medical treatment, but it will not cover psychiatric or psychological treatment related to your pre-existing condition. Some insurers may still cover mental health treatment for new conditions that arise after the policy is in force, provided they are unrelated to the pre-existing condition.
How to Disclose Properly
Full and honest disclosure is not optional. It is a legal requirement under the Insurance Contracts Act, and it is the single most important thing you can do to protect yourself.
Why full disclosure matters
If you fail to disclose your mental health history and later make a claim, the insurer can void your policy entirely. This does not just mean they decline the mental health claim. It means they can cancel the policy and refuse all claims, including claims completely unrelated to mental health. You would lose all the premiums you have paid, and you would have no cover at the time you need it most.
Non-disclosure is not a loophole. Insurers obtain GP records during the claims process, and any undisclosed conditions will be identified. The consequences are severe and not worth the risk.
What good disclosure looks like
- Be thorough. Disclose every diagnosis, every medication, every GP visit, every counselling session. If in doubt, disclose it.
- Be accurate. Do not downplay or exaggerate. If you had three episodes of depression, say three, not "a couple." If you took time off work, state the actual duration.
- Be specific about dates. Underwriters care about timelines. "Depression in 2019, treated for six months with sertraline, no episodes since" is far more useful than "had depression a few years ago."
- Provide context. If your depression was triggered by a specific event (such as a bereavement or relationship breakdown), it is worth noting this, as situational depression is often viewed more favourably than recurring depression with no clear trigger.
The role of your GP report
In most cases, the insurer will request a report directly from your GP. This report will contain your full medical history as recorded in their system. It is a good idea to check your GP records before applying, so you know what the insurer will see and can ensure your application is consistent.
Strategies for a Better Outcome
While you cannot change your medical history, there are practical steps you can take to improve your chances of getting cover on favourable terms.
1. Demonstrate stability
The longer you have been stable, the better your outcome will be. If you can show 12 to 24 months (or longer) of stable management with no episodes, no changes in medication, and no time off work, underwriters will view your application much more favourably.
If you are currently in an active episode or have recently changed medication, it may be worth waiting until things have settled before applying. This is not about hiding anything. It is about applying at a time when your risk profile genuinely looks better.
2. Get a GP letter
A brief letter from your GP summarising your condition, treatment history, current stability, and prognosis can be very helpful. This is not always required, but it provides the underwriter with a clear clinical picture from the outset, rather than relying on the notes in your medical file, which may be harder to interpret.
3. Work with an authorised financial adviser
This is arguably the most important step. An experienced adviser knows how different insurers treat mental health conditions and can place your application with the insurer most likely to offer favourable terms. The difference between insurers can be significant. One insurer might apply a blanket mental health exclusion, while another might offer a loading that still allows mental health claims.
An adviser can also help you present your application in the best possible light, ensuring your disclosure is thorough but framed in a way that highlights stability and management rather than severity.
4. Consider applying for multiple products at once
If you need life insurance, income protection, and health cover, applying for all of them at the same time with the same insurer can sometimes produce better results than applying piecemeal. The insurer assesses your medical history once, and the adviser can negotiate across the package.
5. Ask about review periods
If you receive a loading, ask whether it can be reviewed after a period of continued stability. Some insurers will agree to reassess a loading after two to three years if your condition remains well-managed. This means you can accept the loading now and potentially have it reduced or removed later.
Talk to an Adviser
Getting insurance with depression or anxiety is not a DIY exercise. The differences between insurers are significant, and the way your application is presented matters. An authorised financial adviser can assess your situation, identify the right insurer, and help you get the best possible terms.
At QuoteHub, we connect you with authorised advisers who understand mental health underwriting. It costs you nothing to get advice, and it can make a material difference to the outcome.
Frequently Asked Questions
Do I have to tell my insurer about depression or anxiety?
Yes. You are legally required to disclose any medical condition you have been diagnosed with, treated for, or experienced symptoms of. This includes depression, anxiety, and any other mental health condition. Failure to disclose can result in your policy being voided entirely.
Will I be declined for insurance if I have depression?
Not necessarily. Most people with mild to moderate, well-managed depression can get some form of insurance cover. The terms may include a loading (higher premium) or an exclusion for mental health claims, particularly on income protection. Outright declines are more common for severe or recently active conditions.
Can I get income protection if I take antidepressants?
Yes, in many cases. Taking antidepressants does not automatically disqualify you from income protection. However, you may receive a mental health exclusion, meaning the policy would not pay out for claims related to a mental health condition. Cover for all other conditions would still apply.
Does it matter which insurer I apply with?
Yes, it matters a great deal. Different insurers have different underwriting guidelines for mental health conditions. One insurer might decline your application while another offers cover with manageable terms. This is one of the main reasons working with an adviser is so valuable.
What if my depression was years ago and I have fully recovered?
If your depression was a single episode that resolved years ago and you have had no recurrence, your chances of getting cover on standard or near-standard terms are good. The longer the period of stability, the better. Some insurers will offer standard terms if you have been episode-free for three to five years.
Should I wait until I am off medication before applying?
Not necessarily. Being on stable, long-term medication can actually be viewed positively by underwriters, as it shows you are actively managing your condition. Coming off medication shortly before applying may raise more questions than it answers. Discuss timing with an adviser.
The Bottom Line
Depression and anxiety are incredibly common in New Zealand. Insurers know this, and they have well-established processes for assessing applicants with these conditions. Having a mental health history does not mean you cannot get insurance. It means you need to approach the application thoughtfully, disclose fully, and ideally work with an adviser who knows how to navigate mental health underwriting.
The worst outcome is avoiding insurance altogether because you assume you will be declined. Many people with depression or anxiety have perfectly adequate cover in place. The key is getting the right advice.
QuoteHub connects New Zealanders with authorised financial advisers. QuoteHub Limited holds FSP 712931. The information in this article is general in nature and does not constitute personalised financial advice. We recommend speaking with an authorised financial adviser about your specific situation.
References
- Financial Markets Authority (FMA) , Insurance guidance
- ACC New Zealand
- Sorted.org.nz , Insurance guides
- Insurance & Financial Services Ombudsman (IFSO)
- MoneyHub NZ , Insurance resources
- Cancer Society of New Zealand
- Heart Foundation NZ
- Mental Health Foundation NZ
Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance.