Mental illness disclosure is the act of reporting diagnosed mental health conditions, such as depression, bipolar disorder, schizophrenia, anxiety disorders, or PTSD, on insurance applications and related forms. Because mental illnesses can influence mortality, disability risk, and risk of self-harm, insurers require clear, accurate disclosure of diagnoses, treatments, medications, and hospitalizations. Mental illness disclosure is governed by application questions, state regulations, and privacy laws, but the central principle remains that applicants must answer truthfully and completely. Failure to disclose material mental health history can lead to policy rescission, denial of benefits, or legal disputes, particularly during the contestable period. At the same time, insurers are expected to evaluate disclosed mental illness in a fair and non-discriminatory manner, recognizing that many conditions are well-managed with appropriate treatment and do not preclude coverage.

In the field, mental illness disclosure often becomes a coaching and education issue. Clients may feel stigma or fear of being declined, and therefore hesitate to mention diagnoses such as major depression, panic disorder, or bipolar disorder. Advisors explain that prescription checks, MIB codes, and medical records will often reveal this history anyway, and that nondisclosure can create bigger problems later. Producers typically gather details about diagnosis dates, hospitalizations, medication types and dosages, frequency of episodes, and work or functional limitations. They may suggest obtaining a summary letter from the treating psychiatrist to clarify stability and prognosis. During claims, carriers review mental illness disclosure to determine whether the application was accurate and whether any misrepresentation was material to the risk. Training materials for agents stress the importance of asking all mental health questions verbatim, documenting responses, and avoiding any suggestion that clients minimize or omit their mental health history.