Have you heard of the term black dog?  It was the term used by Winston Churchill to describe the bouts of depression he experienced for much of his life.  The term ‘black dog’ is often used in a colloquial sense to describe a mental illness that affects millions of people.

While the words ‘black dog’ may be a light hearted attempt to describe what may be a dark problem for those afflicted, the words ‘mental illness’ is a vague description of a variety of illness that may impact on a person’s ability to function, either briefly or for a longer period. 

According to the Australian Bureau of Statistics figures, one in five Australians aged 16-85 years had a mental disorder in 2007, and while depression is not the most commonly diagnosed mental illness, it seems to be a disease that most people are familiar with.  In case you’re wondering, according to ABS statistics more Australians are affected by anxiety disorders than depression.

While there is some debate on whether depression is increasing in our society or whether rates are climbing because of a wider definition of what constitutes depression, it seems that more people are being diagnosed with depression and mental illnesses.  

According to Beyond Blue, something like six million working days in Australia are lost every year to depression alone.   Because of this lost productivity, depression is an issue that is increasingly catching the attention of the employers, legislators, health professionals, the public – and yes, the insurance industry. 

If you or anyone in your family hasn’t been impacted by mental illness, then these figures probably won’t bother you.

But if you are one of the increasing numbers of Australians who has experienced a brush with depression, no matter how brief, you may find insurance companies closely scrutinising your application for insurance, particularly if it is income protection insurance.    And the insurance industry is not just interested in your history of mental illness, it may also be interested in any family history of mental illness.  This is because there is often a family history of depression, suggesting a genetic association.

Don’t despair though.  Most insurance companies are happy to consider your application on a case by case basis because every case is different.   It might be for example that your episode may have been due to a limited and event specific issue such as post natal depression or bereavement. 

When completing your insurance application form, it’s best to be honest.  You may need to show that there was a cause for the depression or that you are under the consistent care of a doctor.  Should you happen to make a claim due to a mental illness, like all claims you will need to show you are incapacitated and unable to work.  You doctor will have to verify each month that you are incapacitated, and any insurance payments to you will be made in arrears.

The best way to find an insurance policy that meets your needs is to talk to a sympathetic and qualified financial planner.  You can call us on 1300 766 323.

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

The title of this article was sourced from a book written by artist and writer Matthew Johnstone, who wrote I Had a Black Dog: His Name was Depression, about Winston Churchill and his battle with depression

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