Occupational disability insurance and mental illnesses: opportunities despite a history with a psychiatrist?

Occupational disability insurance and mental illnesses: opportunities despite a history with a psychiatrist?

As www.capital.de reports, people who have already received psychotherapeutic treatment have difficulty taking out occupational disability insurance. Insurance providers consider the risk of occupational disability for people with a psychological history to be too high. Those affected can only obtain a policy that excludes payments for mental illness.

One option for potential insured persons is to submit an anonymous preliminary risk inquiry in order to avoid rejections and increase their chances with different insurers. Another option is to wait to inquire about insurance until the psychotherapy has occurred long enough ago and is outside the insurer's query period (typically 5-10 years). In such cases, insurers theoretically no longer have any reason to reject the request. However, it should be noted that the legal situation regarding illnesses prior to the query period is not clear, so it is recommended that you seek advice from independent insurance experts.

In addition to the article, I would add that many insurers offer risk premiums for minor mental illnesses, which makes the insurance more expensive. These surcharges vary depending on the insurer and illness and can be between 20 and 50 percent higher than the normal premium. Not every conversation with a psychologist is considered psychotherapy, which is why people who seek psychological help after personal strokes of fate can usually get insurance at normal prices. However, things look bad with long-term therapies over months or years. It is recommended that consumers take out occupational disability insurance early in order to receive cheaper rates without pre-existing conditions. If a mental illness is later diagnosed, this does not have to be reported to the insurer.

This situation has potentially significant implications for the disability insurance market. People with mental health histories have difficulty obtaining insurance, which could lead to a reduction in demand. This could lead to insurance companies rethinking their policies and developing alternative approaches to mental health disability insurance to appeal to customers. It could also increase competition between different insurance companies in terms of their criteria for accepting insurance.

For consumers, this means they may have difficulty finding appropriate insurance coverage in the event of mental incapacity. It is advisable to seek information and advice from independent insurance experts at an early stage in order to find the best possible insurance solution. It could also lead people with mental health histories to take additional measures to improve their mental health and reduce the risk of disability.

Source: According to a report from www.capital.de