At least 45% of Australians will experience a mental health issue at some point in their life (SANE, 2019) however with the current Covid-19 situation where many people are still continuing to work from home, or are isolated from family, the social isolation may be exacerbating feelings of anxiety and depression.
What would happen if your mental health issue became so significant that you needed time off from work? Can you claim income protection?
Well, it really depends on the details in your Income Protection policy.
Of all claims paid out by TAL Insurance in 2017, 14% were for mental health and about 72% of these claims were Income Protection.
How does Income Protection cover me?
Just say you need one month off work due to severe stress or anxiety, but you do not have one month of sick leave, you could potentially take unpaid leave from your workplace and then claim Income Protection for a short period of time. However, your insurer will require medical proof from your GP or Psychologist that the mental illness is significant enough for you to require time off work.
Also be mindful that different Income Protection policies have different waiting periods before you can claim for your leave from work.
Can I claim Total and Permanent Disability If My Condition Is Chronic?
We shouldn’t underestimate the chronic nature of serious anxiety, depression and other mental health conditions. If the mental illness is chronic and will permanently prevent you from returning to any type of suitably qualified work, there is a possibility of claiming Total and Permanent Disability. But bear in mind that this may be difficult to prove.
Claiming for mental illness on a total and permanent disability insurance would require you to prove through medical documents and psychologist reports that mental health is the direct cause for why you cannot return to work in any capacity in the future. However, you will need to provide evidence that your condition has little chance of improving and that you cannot return to work in any capacity. Just be mindful to check your TPD definition and see whether you will be applicable.
Not all Insurers cover mental illness in their policies. Some have specific exclusions against Mental health issues. That’s why we urge you to check with your insurer. Here are some suggestions from the team at Shaheen Legal
- Read the policy document. Ask your insurer for a copy of the policy disclosure statement which should have information about how the insurer defines a mental health condition or if they have placed any exclusions on this.
- Get specific definitions. If you are still unsure about their policy, give your provider a call and ask for their definition of mental illness. Some insurers cover all types of mental illness while others only cover specific chronic illnesses.
- Ask about premiums for pre-existing condition. If you have previously had mental health conditions that were treated, the insurer may consider this as a pre-existing condition which has resurfaced due to the uncertain situation brought on by Covid-19. You need to check with your insurer if they required you to pay a premium because of your past mental health history.
- Speak with someone. Because of the confusing nature of insurance claims it’s always best to speak to an expert. If you have tried speaking to your Insurance provider, but were left feeling confused, you can speak to the Compensation experts at Shaheen Legal.
We have years of experience in compensation law and can give you the advice you need in a caring and confidential manner.
Call Shaheen Legal on 02 9854 5552
If your mental health is impacting you, please seek help. Speak to Beyond Blue Australia on 1300 224 636 or call your GP and ask for a psychologist referral.
