Does income protection cover mental health
Yes, your income protection insurance covers mental health conditions. It may not be your first consideration for choosing a policy, but it is vital. Income protection insurance covers many variables. Check all the details before choosing your policy.
Mental health problems can affect anyone at any time. When they also affect your work, you may see your income and other benefits come under pressure. What you need to do is take action and take that action today.
What is income protection insurance?
Income protection insurance is a very valuable policy for all workers. It covers you when you cannot work due to ill health, mental health conditions and pregnancy problems. Employees need cover when their salary dries up, and income protection claims kick in to meet the shortfall.
Income protection insurance is not the same as life insurance or mortgage protection cover but just as necessary.
Mental illness and your employment
Mental illness is a disability. It can take over your life without you realising and even get worse due to the stress it causes. Stress related illnesses due to the pressures of work can add to mental illness.
Your only solution is to stop work to rid yourself of work related stress.
It is not easy to admit to work related stress but the sooner you do, the better. A doctor will recommend that you stop work as a first step. Having income protection insurance cover will make it easier to keep money coming in to pay the bills.
You do not need to add to a difficult time by losing your income.
Be aware of your mental health
We all think that it will not happen to us, until it does. Our mental health is fine and mental health problems belong to other people. The truth is that mental health issues can arise at any time, often without warning.
Young people are as likely to suffer mental illness as older employees. Late nights, social media and long working days do not help. For new mothers, post natal depression and other conditions can be very debilitating.
Mental health support is not always easy to find, especially when you are unaware of any problems. Your GP is the best place to start and will point you in the right direction.
Seek appropriate support from counselling services when you feel any work related stress.
How does income protection insurance work?
It is quite a simple solution to a big problem. When you are unable to work you still need to have an income. State illness benefit will not cover costs when your sick pay stops or your savings dry up. Your income protection policy will take up the slack.
After a deferred period, the income protection policy will begin to pay you an agreed amount. The payment is usually a determined percentage of your salary. Most payments start after four weeks, but you can push the time out to suit your needs.
Payment will continue for the life of the insurance policy. If you pay a higher premium, you may get a shorter deferred period and higher payments.
Mental illness is covered by most income protection policies. Check the small print and ask for advice around any grey areas.
Mental illness and income protection insurance
Mental illness comes in many forms, and few people see it coming. Indeed, a common reaction is that workers are completely unaware of any stress related illnesses in their life.
Unfortunately, they are usually never too far away.
You activate your income protection policy when mental illness makes it too difficult to work. With the paperwork out of the way and your income protection claim in place, you can relax and focus on recovery.
The self employed and mental health conditions
Anyone can suffer from a mental health problem. When you are self employed the stress of work is often more acute. Wondering where your next job will come from is very stressful. Even the worry of getting paid by a client can become a mental health issue.
Income protection insurance can cover your times of mental ill health. You need no longer try to work through the mental health issues affecting your life. Seeking medical help and receiving income protection need not be mutually exclusive.
How about a pre existing condition?
A mental health condition can come back when you least want it. Make sure pre existing conditions are covered by your income protection policy. It is unlikely you will be refused cover for a pre existing condition but ask your broker before it is too late.
An insurance provider may ask for your medical history. Do not lie when it comes to filling out this form. Your income protection cover will depend on the accuracy of your application. Pre existing conditions need not affect your mental health income protection.
Enduring depression, suicide attempts, or bipolar disorder are all pre existing conditions. Any previous post natal depression and associated conditions should also be declared.
If you are unsure about a mental health issue, ask your doctor for advice.
Is there tax relief on income protection policies?
Yes, is the short answer here. You claim tax relief at the marginal rate at which you pay tax. On higher premiums you may save a lot of money when you claim the tax relief.
Self employed workers will have different tax arrangements but can still claim tax relief. The adjustments are usually made when doing a tax return at the end of the financial year. Your insurance company can guide you through the process.
The pay you receive from an income protection policy does come under normal income tax rules. You will need to pay tax, PRSI and any Universal Social Charge payments when due.
Sick pay, mental health issues and income protection
The usual first stop for most people with mental health issues is to claim sick pay. Mental health conditions come under sick pay guidance and may be enough to cover outgoings initially.
The problems arise when your mental health suffers over time or problems reoccur, which they often do.
Income protection payments begin after the agreed deferred period. If you can get that to coincide with the ceasing of your sick pay, your income will not suffer. Mental health will need long term care, and having the benefit of income protection is a big help.
The benefit of income protection policies
Your mental health, like your general health, is precious. Unfortunately, you will never know when a mental health condition will affect you and your ability to work. Income protection insurance cover will be there for you when you need it and is a vital product.
Consider your monthly income protection premium as a guarantee of your monthly income needs. Like any insurance policy, you need the best advice and ask your broker or insurance company for it.
Contact us
When your mental health suffers, you may need to take time off work. Your doctor may insist on it. You can take the stress out of a difficult situation by being prepared.
Income protection cover helps when you need it.
Your mental health condition can stop you from working. You should get the best advice on all income protection policies. Contact us today for that advice and get started on income protection.
