Income protection insurance pays out a percentage of your normal monthly income if you become disabled and unable to work to earn a living. Mental illness has become more prevalent over the years and has also become a reason for an increase in claim payments for insurance companies. There are cases in which mental illness becomes difficult to manage, which could impede an individual’s ability to work. While this should be covered by your income protection insurance, some insurance providers exclude mental illness when underwriting for income protection. However, this does not mean that you cannot get income protection mental illness0 in your policy.
Mental health disorders
Mental illness for income protection purposes usually includes conditions such as anxiety, depression and stress related illness. Many insurance companies today do not include mental illness as part of their mental conditions list for coverage exclusions. Ideally, mental illness should be treated like any other health condition. This would mean that your claim would be treated as separate. However, the underwriting process may reveal that the company would be taking too much risk in insuring you against mental illness and your application may be declined.
Certain occupations are more prone to mental illness, including doctors. The very nature of your occupation may subject you to greater stress levels than the average person, thus increasing the possibility that you may suffer from debilitating mental illness. In addition, people who are naturally caring or whose personality is of a more emotional nature are drawn to these types of occupations.
Mental health history
Even with a history of mental illness, it is still possible to obtain income protection insurance. However, it is first important to ensure that mental illness is not excluded from an insurance provider’s policy. You will be required to disclose all history relating to the condition, when you had it, the medication you took, the extent of the condition and if it affected your ability to work. Your treating doctor may also be contacted to provide an expert opinion on your future risk. The insurance provider’s assessment of your future risk will dictate whether the condition will be excluded from your policy, or if you will get higher or standard premium rates.
Note that as long as you disclose every aspect of your mental health and medical history, your policy cannot be cancelled later on due to mental illness. In addition, since your risk to the insurer is calculated at the time of application, any change in your health, occupation or circumstances will not affect the terms or cost of your policy. If you have a condition of mental illness, you may have to carry out more research when trying to find the right coverage visit here for more info. Comparing different policies and providers is critical, but remember to be upfront about your condition when applying for your policy.
While it could be a little more difficult for someone with a history of mental illness to get favorable terms when compared to a healthy individual, you can still get adequate coverage at a price that fits your budget. Reading through your policy carefully and seeking expert advice before purchasing your income protection insurance is critical in ensuring you obtain a coverage that is suitable to your needs.