What’s the difference between income protection insurance…
Yes, income protection could pay out to you as a result of a mental health condition. Including:
As 1 in 4 people will experience a mental health condition in their lifetime, this can help to provide peace of mind that you could still receive an income if you were unable to work as a result of mental health in the future.
Income protection is an insurance policy that can pay out to you in monthly instalments should you become unable to work due to injury or illness (both physical and mental).
However, if you’re currently living with a mental health condition or have experienced one in the past, this will be classed as a pre-existing condition and some providers may exclude this from your cover.
Comparing multiple quotes can help you to find suitable cover for your personal circumstances.
Reassured Advice can compare income protection quotes from the whole of market, helping you find the best policy to meet your needs.
In this complete income protection mental health guide we’ll cover important topics such as:
Yes, it’s possible to make a claim on income protection due to a mental health condition.
Mental health is often one of the most common reasons providers pay out income protection for.
The table below shows five major UK income protection providers and their most recent pay out statistics:
|Provider||Percentage of claims paid out due to mental health conditions in 2022|
This information has been taken from each providers most recent pay out statistics and is correct as of 29/06/23
Just as employees are entitled to take days off due to physical health conditions, it’s also possible to take time off work due to mental health.
If you’re signed off work due to a mental health condition, you could claim on your income protection policy.
If your condition meets the definition of incapacity listed in your policy and you’re unable to work for longer than your deferred period, you can start to receive payments.
If you’re still able to receive the income that’s protected, your policy won’t pay out to you.
Income protection terminology:
Yes, income protection could cover you for depression.
If you experience depression and it leads to you being unable to work, you can make a claim on your policy.
If your condition matches your definition of incapacity and you’re off work for longer than your deferred period, your payments will commence.
If you have experienced depression prior to securing a policy, depending on your circumstances, it could be added as an exclusion to your policy. This means you won’t be able to claim for this reason.
Comparing quotes is essential in finding cover that’s right for your needs.
Reassured Advice can take your personal circumstances into consideration and provide you with the most suitable providers. Simply get in touch.
Yes, you could be covered for stress with an income protection policy.
It’s a sad statistic that the most common cause of stress is work related stress, with 79% of people saying they have frequently experienced it.
If you’re signed off with stress you may be able to benefit from your company’s sick pay scheme.
However, if you needed to take a longer break from work due to your mental health, or you aren’t eligible for sick pay (like the self-employed) income protection could provide you with vital funds to help cover essential daily living costs.
Why not speak to an expert at Reassured about protecting your income?
Yes, income protection could cover you for anxiety.
As with depression and stress, if anxiety prevents you from working you could make a claim on your policy.
If you’re unable to work for longer than your deferred period and your condition matches your definition of incapacity, you could start to receive payments.
If anxiety has been excluded from your policy (due to being pre-existing) you won’t be able to claim for this reason).
Yes, it’s possible to secure income protection if you have a pre-existing mental health condition.
However, your condition may have an impact on the outcome of your application.
Rest assured, it’s unlikely you’ll be declined for cover, but you may experience inflated premiums or exclusions added to your policy.
The table below details the likely outcomes when applying for income protection with mental health:
|History of mental health||Likely application outcome|
|No history of mental health||Application accepted with standard terms, allowing you to claim for mental health reasons if they prevent you from working in the future.|
|Previous history of mental health||If you have experienced a mental health condition in the past, your personal circumstances will determine the outcome of your application. This could range from little impact to your policy up to paying increased premiums and/or having exclusions added.|
|Recent history of mental health||If you have recently experienced a mental health condition (for example, in the last few years), it’s likely that your premiums will be increased and you may have mental health conditions excluded from your policy.|
|Currently experiencing mental health||If you are currently living with a mental health condition you may experience increased premiums (as with any pre-existing medical condition) and mental health will likely be excluded from your policy (meaning you can’t make a claim if you’re unable to work due to mental health reasons).|
If you find that you can’t get the cover you want or the quotes you receive are too expensive, you could obtain quotes from a specialist insurer (such as The Exeter).
These are insurers who specialise in offering cover to those with pre-existing medical conditions.
Reassured Advice can help you compare quotes from all UK providers, including mainstream and specialist insurers.
By considering all of your available options you can find the right policy to meet your needs at the best available price. Simply get in touch for your free quotes.
The importance of disclosing mental health
If you’re applying for income protection and you have a pre-existing mental health condition, you’ll be required to provide details during the application.
While it can be hard to be upfront about mental health, it’s essential that you do so in order for your cover to be valid.
Providing false information or withholding certain details could invalidate your policy, meaning a pay out won’t be issued.
Insurance professionals are here to help, with their main aim being to find you the right cover.
Insurers have the right to ask for a doctors report from your GP if necessary. However, this can only be obtained with your permission.
If you’re applying for income protection with a pre-existing mental health condition, insurers will likely require additional information. You’ll likely be asked additional questions such as:
While it can be hard to discuss your mental health, providing as much information as possible could reduce the need for a doctors report.
If a doctors report is necessary, it can only be obtained with your permission and will only be required so insurers can get a better understanding of your health.
By obtaining this information they can ensure you’re securing the right cover for your personal circumstances.
Alternatively, if you’re making a claim for a mental health condition, you’ll need to provide medical evidence as part of the claims process. This will likely be in the form of a doctors note.
If you’ve previously experienced or are currently living with a mental health condition at the point of application, this will be considered as a pre-existing condition.
The personal circumstances of your condition will determine the effect it will have on your cover.
Depending on the severity and frequency of symptoms, pre-existing conditions can be added as exclusions to a policy. This means you won’t be able to make a claim for this reason.
However, many insurers are becoming increasingly sensitive and open minded in regards to mental health, with some insurers using ‘reviewable exclusions’.
These are exclusions that can be removed after a certain time period and mental health is often the most common condition to have automatic reviewable exclusions.
Comparing quotes is essential in finding a policy with the right terms to meet your needs, why not use a broker (like Reassured Advice) to compare fee free quotes from the whole of the market?
As an income protection policy pays out monthly, you can use the payments to cover whatever you would spend your usual income on.
Commonly, income protection payments are used to help cover:
While the payments may not be able to cover the full cost of your financial commitments, they can help to ease the strain.
Financial stress can be overwhelming and has been known to lead to mental health struggles, with 40% of those living with a mental health condition saying their financial situation worsens their symptoms.
Planning for the future and securing the right financial protection could help to provide you with peace of mind should you ever need to make a claim.
Many policies also come with additional health and wellbeing support, which often includes mental health services.
To find the right policy for you, why not compare quotes with Reassured Advice?
A friendly and professional member of the team could help you find the best cover for your needs (including policies that include additional support services).
Insurers will never judge you based on the information you provide to them, they simply require this information to ensure you secure the right cover.
The industry has been striving to make improvements to its approach to mental health.
The Association of British Insurers (ABI) have launched mental health standards to help provide better support to those with a mental health condition when applying for cover.
With the launch of these standards, members of the ABI have committed to four standards:
The insurance world is taking steps to break the stigma surrounding mental health and financial protection, such as income protection.
It can be possible to claim on your income protection policy as a result of mental health (depending on your personal circumstances).
Reassured Advice can help you compare quotes from the whole of the market and provide you with personalised recommendations on what’s best for you.
A friendly member of the team will also be on hand to guide you through the application and answer any questions you might have.
Simply get in touch for your free and no-obligation quotes.
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