Mental health awareness
Are we doing enough to support clients with improving their mental health?
Vikki Harrison
Marketing Manager
When considering buying income protection and/or critical illness protection, most people think about the possibilities of being diagnosed with illnesses which are more visible and talked about such as cancer, a heart attack, or stroke. What many forget to consider is that a decline of mental health can be just as debilitating as any other illness or disability.
This is an important topic that is dear to us at Scottish Widows and the wider Lloyds Banking Group with Mental Health UK having been our key charity partner for several years.
The rise in acceptance of poorer mental health also means advisers will be facing into these conversations more routinely, so how do we have these sometimes difficult conversations with clients to ensure we make them feel supported enough to disclose any previous conditions and ensure any future claim is paid?
As the cost of living continues to be a challenge, it is key that we demonstrate how we are by the side of clients, supporting them facing into and overcoming these ongoing challenges.
The 2024 FCA Cost of living report found that in the 12 months to January 2024, due to the rising cost of living 43% (22.7m) suffered anxiety or stress and 20% (10.4m) had suffered with their mental health1.
Mental Health remains the most common condition we see on insurance applications with 24% of applicants disclosing a mental health condition2.
The RECES Model is a core part of the Mental Health First Aiders program run by Mental Health UK which is being extended across many companies in the UK. This can help advisers remove the stigma of having conversations around mental health and help clients to feel supported.
Respect: Consider how the customer wishes to discuss this information. It may be preferable for them to write it down or they may want to have a friend or family member with them. They will need time to think and formulate their thoughts and this should be respected.
Empathy: Ask open questions which give them opportunities to shape the conversation. This is more considerate than just bluntly reading the questions on an insurance application about things such attempts on life or self-harm instances which could be upsetting for the client. Listen without judging and offer reassurance and verbal nods so they know you are listening. It is important in this space to retain professional boundaries and look after your own mental wellbeing.
Clarify: Recap on what they’ve told you to clarify that you have understood correctly. Ensure that you have all the information you need to proceed with the application and discuss initial next steps.
Empower: Let them know that they are not alone and mental health conditions are the most commonly disclosed conditions on insurance applications with most applicants receiving fair underwriting terms.
Signpost: Where appropriate, direct the client to professional support. It may be worth having local GP and charity details to hand so you can support them in accessing information and guidance. If you are confident on getting them terms then you can also advise that by setting up protection they will have access to provider support options.
Advisers are ideally positioned to ensure clients’ mental health is fully covered, offering everything from preventative support to quick and easy access to treatment when needed. Mental illness has been the most common condition on insurance applications for over a decade. It’s well known that approximately one in four people in the UK will experience a mental health condition each year. However, this statistic mainly reflects diagnosed conditions, suggesting the actual number could be higher when including undiagnosed cases.
Attitudes towards mental health have shifted dramatically over time. The industry has adapted with enhancements in underwriting philosophies to ensure more people with mental health conditions can access protection policies. In fact, most people with mental health conditions can obtain coverage, often on standard terms. Depression, anxiety, and stress are common in everyday life, but people experience them to varying degrees. Underwriting data from Scottish Widows indicates these conditions constitute the majority of mental health disclosures on applications.
Many clients believe that disclosing a mental health condition will prevent them from obtaining insurance coverage. However, the majority of people who disclose a mental health condition will still be able to get cover, often at standard rates.
So once a customer has their protection financial safety net in place, how can we as an industry support them in looking after and improving their mental health?
After taking out a policy, clients should have access to support services that are now usually included as standard. Given the right access to early intervention and support services people can better manage their mental health, however the availability of such services through the NHS is still not consistent and there may be long waiting times, these services may be vital in providing support in the interim. This is where protection plans can step in, through the mental health support benefits many insurers now offer.
The Office for National Statistics (ONS) revealed research that found 9.7m people in England, 21% of adults, are waiting for a hospital appointment, test, or to start receiving medical treatment through the NHS4. With 31% or 5.5 million people, saying it was difficult or very difficult to get a GP appointment. NHS Talking Therapies data 2023/24 showed the average waiting time for a first treatment in England was 20.6 days, while the average waiting time between first and second treatment was 63.5 days (up 1 day from 2022/23)5.
Looking through our own statistics we can see the take up rate on support services although rising is still under utilised by customers, are customers aware that they can access the services through their protection policy? Do they understand they can access these immediately, and do they know the breadth of the services offered?
The range of options can vary from provider, but they are much wider that many realise. Long-term emotional support, help to prepare for consultants' appointments, signposting to self-help groups and sourcing suitable equipment & medical aids are some of the areas where support is available.
Advisers and insurers both have a responsibility to ensure that customers are aware of the services included on their policy, it's breadth and how they can access them.
Experiencing problems with our mental health can happen to anyone and this isn’t anything that we should be ashamed of. As an industry we should take pride in being able to offer these services as part of customers' protection plans but there is still more educating to be done.
Sources
1The 2024 FCA Cost of living report
2Scottish Widows Protect, 2024
3Scottish Widows data, Q4, 2024
4https://www.covermagazine.co.uk/news/4192220/7m-awaiting-nhs-treatment?
5NHS Talking Therapies, for anxiety and depression, Annual reports, 2023-24 - NHS England Digital