Does Income Protection Insurance Cover Depression?

Income protection for depression

Research has shown one in four residents of the United Kingdom suffer from mental health conditions at one point in their life or another.

Depression, in particular, affects thousands of individuals every year and even thousands more of those people who help the ones suffering from depression and several other debilitating mental health conditions.

While some people can manage their depression symptoms and still function regularly, others are affected by this condition much more harshly.

While depression is very often misunderstood, society generally recognises depression as a serious illness.

Because of this, there is a growing understanding of what individuals with this condition must go through daily.

While episodes of depression can typically be short-lived, usually lasting a few weeks to a few months, some individuals suffer from depression for more extended periods or have these shorter periods occur time and time again at various points in their lives.

The Restriction On Living

One of the main issues those suffering from depression deal with is that it inhibits their ability to function and go about their life as usual.

In severe cases, it prevents them from continuing their careers and financially supporting themselves and their families.

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Since there is a greater awareness of the condition of depression and the scenarios in which it can take place, there is an increase in society’s preparedness to help those who are suffering and acknowledge their daily struggle.

The insurance industry is one of the sectors of society that has become better prepared to deal with and help those who are suffering from depression.

Insurance companies have worked hard to make sure they can accommodate these individuals and arrange insurance products designed to benefit them even if their professional, personal, physical, and mental issues continue.

Additionally, more and more insurance providers offering income protection policies are extending the conditions to qualify policyholders for a claim to cover more instances that include episodes of depression.

Scarcity Of Good Products

While the industry is moving in the right direction, this does not mean every insurance company offers these products.

Some insurance providers remain cautious when it comes to granting claims for those who are suffering from the many issues depression can bring.

Some companies offering these types of products charge higher premiums to include a depression qualification in the list of items, making policyholders eligible to make a claim.

For those who are looking for insurance coverage that will cover instances of depression, it is important to know that the premium prices will often be higher, by an average of about five percent above the standard premium price.

With this being said, if the policy seeker had an isolated experience with depression that happened several years ago, it may not have any impact on the price of their income protection insurance policy.

They will, of course, have to provide the insurance company with medical records from their general practitioner to understand more about the depression that occurred.

Those looking to purchase some of the most far-reaching insurance products, including critical illness coveragelife insurance cover, and income protection insurance, must disclose information on their current health level and medical history.

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This information must be provided so the insurance company can determine whether the policyholder’s health causes any concern or increases their likelihood of making an insurance claim.

If there are any pre-existing health conditions, it will not be surprising that they will be used to determine the individual’s general health moving forward.

While small, isolated instances of health hiccups like a broken leg or one-time cold will not hurt their insurance premiums, longer-term conditions like dealing with multiple episodes of depression could cause the insurance adjuster to raise the premium payment to cover the higher risk of making a claim.

For those insurance providers offering income protection insurance products, mental health issues like depression are among some of the most probable reasons why a policyholder may make a claim.

This is only seconded by those who suffer from musculoskeletal conditions or have a “bad back.”

This may be the reason why the income protection insurance industry is, in some ways, falling behind when it comes to acceptance and caring for those individuals who suffer from mental health issues.

The Issue Of Law

Under the Disability Discrimination Act, it is illegal for insurance providers to deny a policy to an individual who suffers from depression unless the provider can identify the statistically increased risk to them making a claim based on their specific mental condition.

This is now a standard procedure for many income protection insurance providers, which is often called a risk assessment (this is performed on those policy seekers who have noted reoccurring issues with depression on their application).

Should this assessment show that the individual is at an increased risk of claiming due to their mental condition, like depression, the insurance provider is then at liberty to deny them a policy or raise the cost of the insurance product to help cover the increased risk of making a claim.

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Even though this is the case, it is important to know that income protection insurance policies are not the only option when it comes to looking for products to help cover an individual should they be unable to work due to complications with a mental illness.

One of the problems policy seekers often have with securing an income protection policy is that there is no set definition for depression and no sliding scale to help determine the level of seriousness or proposed risk to classify individuals.

Since there is no way to assert how severe someone’s depression is through the insurance company’s definition or if they zone in on a single period when the individual’s depression was a severe issue, it is possible for their application for income protection insurance to be dismissed without proper evaluation.

For those who are looking for information on income protection insurance policies and what the options are for those who are suffering from depression, the knowledgeable team at Claybrooke is available to answer their questions.

Our team can help policy seekers find an insurance product that can meet their needs and their budget regardless of any mental conditions or depression complications.

Before deciding income protection is not for you, call our team to discuss the options available to protect you and your family.