Fear, worry and stress are normal responses to perceived or real threats, and at times when we are faced with
uncertainty or the unknown. So it is normal and understandable that people are experiencing fear in the context
of the COVID-19 pandemic.
The pandemic and the resulting economic impact
have negatively affected many people’s mental health.
Nearly half of UK adults (47%) have experienced
mental health challenges during the pandemic, with
millions battling with financial hardship, relationship
stress and sleepless nights.
Life Insurance or Critical Illness Cover
New research reveals that only a small proportion
of people notify their insurer of a mental health
condition in the mistaken belief that it will affect
their ability to take out life insurance or critical
illness cover. This means they might not have
adequate cover or access to support provided by
their insurer.
Three in ten (30%) people report that they
currently have a mental health condition or have
experienced this previously. However, only four
in ten 44% have informed their insurer. There
remains confusion around what can, or should, be
said to an insurer when it comes to physical and
mental health.
Ineligible for Protection Cover
Of those who did not disclose a mental health
condition, nearly two-fifths (37%) thought their
provider would only be interested in physical illness.
Over a quarter (26%) felt it was personal and so
would rather not share their condition with their
provider. Almost one in five (18%) worried they would
not qualify for a policy or would be charged more.
Contrary to these misconceptions, declaring a
mental health condition does not necessarily mean
higher premiums and it is unlikely to mean someone
is ineligible for protection cover. Being open with an
insurer means those with mental health conditions
are more likely to receive the right support.
Getting the right support
Some people are confused about how mental health
conditions affect their critical illness cover or life
insurance, which prevents them from getting the
right support. Insurers aren’t trying to catch people
out – they are there to help.
The challenges of the last 20 months have
highlighted the value of protection policies for
families and individuals in difficult times.
[1] Research carried out online by Opinium Research across
a total of 2,002 UK adults (Booster sample of 502 self-
employed workers and 1,015 Renters. Fieldwork was carried
out between 21 and 27 October).
Based on tax legislation at the time of publication. Please be aware that there will have been changes since this was published. Speak to your adviser for the most up to date information.
