Are Insurance Providers Actually Providing for People with Mental Health Problems?

Mental health, once considered a taboo topic, has become a much-discussed subject.

Attitudes surrounding the sensitive subject were already beginning to shift when Harry and Meghan’s affiliation to mental health charities helped boost global awareness.

Whatever the reasons behind the change, mental health is now an everyday news story. And the stats echo this: in the last week alone, 1 in 6 adults will experience anxiety or depression.

As if that’s not bad enough, 1 in five adults have, at some time, considered taking their own life. With mental health now at the forefront of everyday life, insurance companies have had to increase their awareness of the needs of customers who suffer with theirs. 

For those suffering from depression, award-winning life insurance broker Reassured have written this comprehensive guide to help answer any questions.

Have insurance companies kept up with changing demands?

While mental health concerns are harder for insurers to assess than most physical health conditions, insurance firms are increasing their commitment to serving people who suffer with mental health illnesses.

If you have a condition it could affect how you buy some insurance policies. But if you know which insurance providers to use, you should find it relatively easy to get the insurance you need, without being penalised.

Whether you have a physical health issue or a mental health one, there should be little difference in how an insurer reaches their decision to cover you.

Will my insurance premiums be hiked?

When taking out life insurance or income protection insurance, a mental health condition could affect the price an insurer might charge you to offer the financial protection you want.

If you have a pre-existing mental health condition, it’s important that you disclose this when making your application for insurance.

Some insurance providers may turn you away due to the higher risks associated with mental health.

However, the Equality Act 2010 states that insurance providers can only treat you differently (by charging you more or refusing you cover) based on your mental health condition if both the following are true:

1. The insurance company acts on information that is both reliable and relevant; AND
2. What they’re doing is reasonable

This law should ensure you get treated right when you start looking for insurance protection, whether that’s life insurance, income protection or anything in between.

4 ways to make getting insured easier.

1. Get a diagnosis

Mental health conditions have a wide scope, affecting your thoughts, mood and behaviour.

If you have an issue with your mental health and are yet to seek help, you should discuss your concerns with a doctor.

Getting a diagnosis will not only help lead to a positive treatment plan, but an accurate record of your condition and symptoms will also help when it comes to buying various insurance products too.

2. Be honest

Failure to declare a pre-existing mental health issue when you take out insurance could result in your policy being void. For example, if you take out a life insurance policy and die due to complications stemming from your mental health condition, an insurer is likely to find out that you were deceptive and refuse to pay out on a claim.

Knowing about existing health conditions allows insurers to understand the type of health condition and associated risk based on scientific evidence.

Mental health problems can have a direct effect on the risk of premature death or disability and there are links to abuse of medication, alcohol and drugs adding to the potential for serious accidents to occur.

Always inform your insurance provider of any changes which may occur once your policy is in place.

3. Be prepared

Depending on your condition, you may find some insurers won’t accept your application for cover but there are specialist providers who will be able to help. When you start shopping around for insurance, you may find it helpful to prepare beforehand.

If you have a mental health condition, most insurers will need to know about:

• Your current treatment and medication
• Previous treatments
• Details of your doctor or specialist
• Symptoms and when you last suffered them
• Information about any periods of hospitalisation
• Time taken off work due to the condition

Some underwriters will ask if you have ever had serious hospitalisation or attempted suicide. Others may only be interested in the last five years, while anything that happened prior may not need to be disclosed at all.

4. Know what you want

Whether you need critical illness cover, life insurance or income protection insurance you need to know how much coverage you want.

Regardless of pre-existing physical or mental health conditions, the amount of cover you need and the length of time you want protection for will both impact the price you’ll have to pay.

Having a clear understanding of your needs will help prevent confusion.

If you need support and someone to talk to about any of your mental health concerns, contact Mind who have a team of people on hand to help. Alternatively, if you want to find an insurer who will understand your mental health condition, speak to Online Money Advisor who offer an unbiased, informative service and can put you in touch with an insurance broker most understanding of your needs.

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