Does Disability Insurance cover mental health issues?

Most Disability Insurance Policies cover a range of mental health conditions that severely interfere with the performance of your job. Generally, this will include major depression, anxiety disorders, bipolar, and even PTSD. For example, a client of Canadian LIC was claimed for major depression under her policy, thereby allowing her the necessary financial reinforcement during her treatment period.

Most states prove mental health conditions with well-documented evidence from licensed mental health professionals. In order to receive coverage from the plan, a need for it has to be clearly diagnosed, with treatment records indicating how the condition obstructs the performance of your work. For example, a Canadian LIC client had to submit regular updates from his psychiatrist to continue receiving his benefits for an anxiety disorder.

Yes, there are Disability Insurance Policies for the self-employed that cater specifically to the different challenges freelancers and entrepreneurs face—specifically, variable income. Be sure to consider a policy that has flexible terms and comprehensive coverage. A self-employed photographer with Canadian LIC opted for a flexible benefit structure policy, which became very important as she stepped back due to anxiety.

Standard exclusions usually include pre-existing conditions diagnosed before buying the policy and issues with mental health as a result of substance abuse. One Canadian LIC client truly found out about the exclusion of pre-existing conditions in the worst possible way whenever he tried to claim for an anxiety disorder diagnosed years prior to his availing of his policy.

The elimination and waiting periods vary with every policy but are commonly 30-90 days. This period must pass after the onset of disability before benefit payments begin. A client at Canadian LIC had to wait 60 days under her policy’s terms before she started receiving benefits for her PTSD.

Indeed, some Disability Insurance Policies allow for partial disability benefits, which come in handy in case you are able to work part-time as a result of your mental health condition. For example, a graphic designer client of mine has coverage with the Canadian LIC that allows him to work reduced hours while living with depression.

Look for coverage that is flexible in its coverage options, recognizes irregular income patterns of self-employed professionals, and covers a broad spectrum of mental health conditions. You also have to consider policies that have short waiting periods, comprehensive benefits, etc. For example, a consultant with the Canadian LIC chose her policy based on these criteria, so she had robust coverage in place while dealing with intermittent anxiety issues.

Canadian LIC understands all the personal requirements and needs very well, gives personalized advice, and recommends the best available Disability Insurance Policies. Starting from ascertaining the kind of coverage needs you have; our experts can bring you through to explaining complicated policy details to ensure you get the right type of protection for professional and personal situations.

While all Disability Insurance Policies can cover mental health conditions, some have varying tenures. Some will provide coverage for a few years, and some might extend it until retirement age. The main factor of consideration, however, would be the severity of the condition itself and how well or how badly it has been faring over time. A Canadian LIC client, who is a freelance web developer, benefited from a policy that provided long-term benefits due to his chronic depression, helping him maintain financial stability over the years.

This is generally more stringent in terms of proof of income and may command higher premiums due to the additional risk involved with uncertain or variable income. Meanwhile, such policies are highly customizable. For instance, a self-employed consultant-client of Canadian LIC could certainly get far more comprehensive mental health coverage under her Disability Insurance Policy, which is suitable for fluctuating work hours and income.

Yes, most insurers do allow policy upgrades to provide more comprehensive mental health coverage. It is always advisable to review one’s policy at periodic intervals and change it according to the changing needs. A Canadian LIC graphic designer upgraded her Disability Insurance Policy after she realized her existing coverage was very little for her anxiety and stress disorders.

If you’re well enough to return to work after making a mental health claim, one of the most crucial things you can do is to communicate this change to your insurance provider. They’ll take you through the necessary steps on how to transition off benefits, potentially transitioning to a partial return to work. One Canadian LIC client did just that—and he returned to work part-time successfully with the benefits adjusted proportionally, which allowed an easier adjustment.

Other things that may help trim premiums are selecting a longer waiting period, choosing a benefit period consistent with financial planning and proof of stable income history. For example, one of our Canadian LIC advisors was able to adjust the waiting period for an independent photographer who is able to reduce her monthly premiums, where she still has good coverage for her bipolar disorder.

You will need to contact your insurer immediately; you will be required to provide the necessary medical records from your treating psychologist or psychiatrist and proof of lost income as a result of your mental illness. A Canadian LIC client, an event planner, followed these steps meticulously, which ensured a smooth claim process when she was diagnosed with severe anxiety.

Should you have differences or disputes, the first step is to go through the details of your policy. If it still remains unresolved, consider consulting an insurance broker or a lawyer. Canadian LIC has assisted several clients in negotiating with insurers to recognize and cover claims for mental health issues accurately.

A broker like Canadian LIC can be of immense help, for he provides you with knowledge regarding policy details, can help in tailoring insurance solutions to suit your needs, and can assist with mental health disability claims. They look more closely at minute details of the Disability Insurance Policies and even represent you in the finest way so that you get the benefits due to you.

Disability Insurance Policies should be reviewed every year or at any time a person’s health or professional situation undergoes a change in suffering. Such regular reviews are important because the coverage will match your current needs. A Canadian LIC client, a freelance editor, found it beneficial to adjust her coverage after her therapy sessions increased, ensuring her policy continued to meet her evolving mental health needs.

Most mental illness disability claims, however, require a heavy burden of documentation from your treating psychiatrist or psychologist, including the nature of the diagnosis, a treatment plan, and an assessment with regard to the impact of your condition on your ability to work. For example, one of our clients was required to provide a comprehensive record of treatment in his claim for depression, which was very useful in proving to the insurance provider that he was suffering from a serious medical condition.

Yes, some Disability Insurance Policies cover intermittent mental health issues under the clause of recurrent disabilities. In such cases, one can claim benefits during those periods when the condition keeps you away from work, provided that these episodes meet the policy’s criteria for disability. There was a case for Canadian LIC where a graphic designer could claim benefits in periods of episodic anxiety that interrupted her ability to complete projects.

A common misunderstanding is that all Disability Insurance Policies provide the same level of mental health coverage. In reality, coverage can vary significantly between policies. Some might have lengthy waiting periods or require extensive documentation. For instance, a Canadian LIC client was surprised to learn that his policy did not cover short-term mental health issues, only long-term or permanent disabilities.

Canadian LIC is committed to understanding the pressure one faces when self-employed. Canadian LIC will help customers pick policies that provide sufficient coverage for mental health, flexible terms, and low premiums, further investigating their special needs. Recent success story: With Canadian LIC’s guidance, a self-employed photographer has picked a policy that suits her fluctuating income and includes full mental health coverage.

Yes, you can change your Disability Insurance provider if you find a better plan offering full coverage for mental health care for your needs. However, be very careful when comparing the new policy benefits and terms of interest that attract you to the current one, specifically new waiting periods that may apply to you or exclusions to pre-existing conditions. Canadian LIC recently assisted a client in transitioning to a new provider that offered more favourable conditions for managing his bipolar disorder.

If you currently have a policy in place that does not truly satisfy your needs for your mental health condition, in the first instance, you should meet with your insurance broker. They would be better placed to look at your policy in detail and explain alternatives if needed. A Canadian LIC advisor helped a client enhance her coverage for anxiety through additional riders that provided broader protection.

Pre-existing conditions can impact mental health coverage to a great degree, particularly if your mental health condition had been diagnosed prior to availing of the policy. This would disallow one to claim benefits for such conditions. One such client of ours had to negotiate this dilemma through detailed case histories to allow newly diagnosed conditions—unrelated to his pre-existing mental health issues—to be covered in the scheme.