subject: I Was Recently Diagnosed With Depression. What Happens Under My Term Life Insurance, Income Protection and Trauma Insurance Policies? [print this page] I Was Recently Diagnosed With Depression. What Happens Under My Term Life Insurance, Income Protection and Trauma Insurance Policies?
A diagnosis of depression is often more of a relief than a burden. As opposed to a diagnosis of cancer, multiple sclerosis or HIV, a diagnosis of depression gives you a way forward, acknowledging the reality and treatability of your condition. However, most of us are aware that mental health is an increasingly common factor in illness, injury and death ... and as such, a diagnosis of depression can have an impact on your income protection, trauma insurance and life insurance policies. Today we check out exactly what happens under each of them.
Life Insurance and Depression
Life insurance only pays a benefit when you die or are diagnosed with a terminal illness (in some cases). Naturally you won't be able to claim following a diagnosis of depression - but if you already have a life insurance policy, hang on to it. Having that diagnosis of depression means that any policy you try to switch to in the future may be rated much higher than your current policy.
If you don't have life insurance but would like to obtain it, this is certainly possible. Compare life insurance policies and make your applications once your treatment routine has been established and the condition is regarded as controlled, or even diminished. Your prospective insurance companies will be quick to tell you that there is no suicide payout within 13 months of policy's start date ... just ignore the implications of this attitude!
Income Protection Insurance and Depression
If you already have an income protection insurance policy and can't work because of your depression, there's a strong likelihood that you'll be able to claim. You will need to:
Visit your own doctor for an initial diagnosis
Visit the insurance company's doctor for confirmation of this diagnosis
Wait for your nominated waiting period
Trauma Insurance and Depression
Depression is certainly traumatic. However, few trauma insurance policies cover mental illnesses. Those that do usually cover dementia, Alzheimer's disease and/or Parkinson's disease ... but not depression. As with your life insurance, though, if you already have trauma cover make sure you keep up with the payments - you might find that you have much higher premiums on any new trauma insurance policy.
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