Posted September 18, 2021

The good news if you are struggling with a mental health condition is that there are a number of specialist providers who can help with cover for pre-existing conditions.

Whilst there are plenty of types of insurance and insurance providers who can offer this specialist type of cover, unfortunately no provider can guarantee to cover you.

Each policy is assessed on a case-by-case basis which will take into consideration the individual medical details and circumstances of the person who is looking for cover.

What types of policies are available?

The types of protection or insurance policies that might be available to someone with mental health conditions include:
• Life insurance
• Health insurance
• Income protection

Not all of these types of cover are available to everyone, and a decision will be made on each individual case based on a person’s medical diagnosis and also their most recent medical history.

What is income protection?

Income Protection Insurance (sometimes referred to as IP insurance) is a type of insurance that helps you financially if, as a result of an illness or injury, you are not able to work.

With Income Protection Insurance you are covered as a result of most injuries and illnesses that may stop you working both in the short or long term. The cover does not pay out if you are made redundant. The policy usually works by replacing a part of your income if you are injured or ill and cannot work. The cover lasts until you are able to return to work, take retirement, die or until the policy ends – or until the limited claim period applied to your policy ends – whichever of these occurs the soonest.

Whilst the policy is in place you will be able to claim as many times as you need to.
The premiums on a policy are determined dependant on the policy and a person’s circumstances, these include age, job, how much income is being covered (usually between 50% -70% of your earnings), health, when the policy ends, how long you can wait for payments to start (this would usually be after sick pay ends, and you are not covered by any other insurance. The longer this period is the lower the premiums).

Why should I consider income protection?

How would you pay your bills if you were ill? Do you have sick pay for your job and how long is it paid for? Are you self-employed?

Sometimes illness takes longer to recover from than sick pay is paid for, and of course sick pay may not cover all your bills. If you are self-employed, you will not have sick pay from an employer and could struggle. Income Protection can be necessary to cover these shortfalls in your income so that you don’t need to worry about money, just getting better.

To discuss your options for this useful cover, please don’t hesitate to get in touch. We’d be happy to talk to you about the cover that is most appropriate for your needs.