Mental Health & Life Insurance

 

A mental health problem will affect at least 45% of Australians at some point in their lives. Even if you have a mental health condition, you may still be able to obtain life insurance coverage; in fact, most people can do so. To determine your eligibility and offer you the most appropriate coverage, the insurer will need more information from you.

What to expect when applying for Life Insurance?

Typically, a life insurance application for a person undergoing treatment for a mental condition, such as depression, will be evaluated at standard rates (with no loadings or exclusions).

If you have a history of well-managed mental illness, it is typical for an exclusion to apply to income protection benefits. To determine the terms of your coverage, the insurer will also take into account any information you supplied in your application, including past medical issues, illness in your family, and other lifestyle variables. For those who also have no prior history of mental illness, this process is the same.

Your doctor may also be asked to provide a personal medical attendance report (PMAR), which includes the dates and specifics of any diagnoses, along with any associated symptoms and treatments.

It is critical to emphasize that each application is evaluated individually because no two persons are the same. One of the numerous factors taken into account when you apply for coverage will be the therapy you are receiving under a mental health plan. To ensure that you and your family will be completely covered if something does happen to you, it is in your best interest to submit as much information as you can.

 

Life Insurance & Depression

Around 1 million Australians experience depression each year, making it the most common disability worldwide.  People who have already experienced depression or who are undergoing treatment for it are typically eligible for life insurance coverage.

Your insurance underwriter will probably factor in the extent of any existing depression when determining your premiums when reviewing an application for life insurance or income protection coverage.

Many insurance companies will ask you for details about the events surrounding your depression diagnosis and any subsequent treatments you may have received to assist with managing your illness. It's conceivable that you will be asked for information about your medication, including the precise names of your medications, their dosages, and the dates on which you were ordered to take them if you have received medication as part of any therapy for depression.

If you have been given a diagnosis of depression, you can anticipate being questioned about the precise date of your diagnosis, whether you are currently receiving psychiatric treatment or have ever done so, and whether you have ever been admitted to the hospital or received inpatient treatment for depression.

 

As with all life insurance policies, it is important to consult the Product Disclosure Statement for clarity if you have questions about any of the terms and conditions found in a particular policy.

 

Can you still get life insurance with a mental illness?

Living with depression or an anxiety disorder doesn't need to stop you from getting your life insurance sorted.

About 3 million Australians are living with a form of anxiety or depression (Beyond Blue 2020)

Frequently Asked Questions regarding Mental health & Life Insurance

"How does having a past (or current) mental health illness influence your ability to obtain life insurance broker and provide a safety net for yourself or your family?"

The good news is that you can still arrange your life insurance even if you've had a history of mental health problems.

In fact, with the appropriate knowledge and a specialized financial advisor on your side, you may still be able to qualify for a variety of life insurance policies.

Just be ready to first give your specialized financial adviser more background information so that we can help the insurance better understand your unique position and deliver an individualized evaluation.

There are no doubt attitudes towards mental health issues are slowly changing for the better as more and more people in our community see the importance of talking about what matters most - our good mental health.

Taking a one-size-fits-all approach to understanding mental health is a difficulty for many traditional life insurance businesses.

Some people who do not have a mental health condition are finding themselves assessed by insurance companies as if they do, while others with well-managed conditions tell us ‘they feel their circumstances are being ignored’ as they find themselves in the too-hard-to-insure-basket, with nowhere else to turn.

Do insurance companies pay out on Mental Health related claims?

Unquestionably Of course!

Over 9,500 Australians received compensation from life insurance firms totaling $1.24 billion1 (yes, the word "billion" is capitalized) for mental health claims in 2019.

Where do we start?

Let’s get clarity first on the diagnosis,

Whether a person is dealing with a reactive grief event, a professional diagnosis of depression or anxiety, (or something else), being explicit about what, why, and the best way to handle the situation is crucial to making sure an insurance company understands your situation.

·         Depression and grief may appear similar at first glance, yet their respective triggers can sometimes be very different.

We can all naturally experience the mental effects of an abrupt, (sometimes surprise), and strained emotional response in response to some reactive grief-based occurrences. It affects us in many different ways, whether it be the unexpected death of a parent, a child's injury, or the loss of siblings or friends.

·         Anxiety and depression are two separate conditions.

Whatever your life story may be, having the best chance of getting your life insurance policies in order requires that you understand your triggers, appreciate their impacts, and work with the proper diagnoses.

One of the top life insurance specialists in Australia, Angelic Insurance has over five years of experience assisting Australians in making informed decisions on their needs for life insurance.

Call our insurance specialists at 02 8015 5507 if you have questions regarding how to obtain a life insurance policy while dealing with a mental health condition, such as depression.F