I been contracting for the past 10 years and have 3 and at times 4 regular clients. I never had income protection insurance but recently was started developing anxiety issues and currently on prescribed medication.
A few friends have suggested I should look into income protection. As I’m on medication do you think there would be an issue, thanks?
Graham Doessel - CEO - MyCRA (Specialist Credit Repair) Lawyers (LPH)
Current Rating: 4.65 / 5
If you are currently on medication for anxiety, you will have trouble getting income protection now without a mental health exclusion, if not, a decline all together. As always, it's best to take this stuff out when you are fit and healthy and you don't think you'll need it. Insurers would go broke accepting policies for people who were about to claim.
You could always give it a go and request a pre assessment with some underwriters but the first thing I'd be doing is seeing what you might already have in place in your superannuation fund.
Let me know if you want a hand with anything.
As Glenn has explained you’ll have a hard time getting cover now without a mental health exclusion.
Still worth looking at though because there a whole lot of other reasons why you might claim on income protection, even if you do have a mental health exclusion.
All the best.
Firstly, what are the major concerns you are looking to protect with the income protection? The reason I ask this is as Glenn pointed out, a mental health exclusion is likely on any income protection policies and this would be consistent with the various insurance providers.
From the information you have provided, I think it would be very unlikely that an insurance company would decline the application for you.
The insurance companies will review a mental health exclusion if there has been a period of time that you are free of symptoms or treatment (medication, counselling etc). This time frame varies between insurers but is typically 2 years and in some instances 3 years.
Having the same mental health exclusion on my policy, I would argue that I am in a better position to not claim on the policy after seeking the right help than had I not sought treatment. For me, I still see value in having my income protection for everything else.
The pre-assessment that Glenn mentioned is something that your insurance adviser should be doing for you.
I would, however, suggest considering if having the mental health exclusion would be a deal breaker or not before pursuing any further.
Check out this video I have recorded about the impact of mental health on insurance applications -https://youtu.be/QjJ8WcR-2gQ