beyondblue have been providing advice to an Australian life insurer on how they can enhance their mental health underwriting questions, to ensure that they:
- are simple to understand
- are focused on the customer’s diagnosed mental health condition
- consider both risk and protective factors that affect an individuals’ mental health and their ability to manage their condition and return to work.
We are seeking feedback from blueVoices members on the draft mental health underwriting questions on whether this aim is being achieved, and if any further changes should be considered.
A life insurance policy can protect you and your family’s future if you get sick or injured and need to take a long period of time off work. It can also help if a disability or sickness impacts, restricts or impairs your everyday life.
It can also provide a one-off payment to a person you nominate if you’re diagnosed with a terminal illness or die. This money can be used to pay off debts, pay day-to-day expenses or be invested for future needs.
When a customer applies for life insurance, they generally are required to be ‘underwritten’. This is a term used by life insurers to describe the process of assessing risk, to ensure that the cost of the life insurance is proportionate to the risks faced by the customer applying for the cover. To assess a person’s risk, life insurers rely on a range of sources and at a minimum, customers applying for life insurance will be asked to complete an application form and a medical questionnaire. This medical questionnaire would consider the customers’ physical and mental health.
Feedback on the draft mental health underwriting questions for life insurance is now closed. If you'd like more information on this activity please contact the blueVoices team on 03 9810 6100 or via email