Millions of people across the UK could be lacking vital life or income protection due to concerns over their mental health issues, according to new research from LifeSearch, the UK’s leading protection specialist.
The research, which surveys 1,000 people living in the UK, reveals that one in 10 (10%) admit they would stop, or have stopped applying for protection insurance (such as life insurance, or income protection) due to the risk of rejection. For those aged 25-34, this figure concerningly rises to 16% (one in seven), and to 18% for those aged 35-44 – key life stages when individuals often consider starting a family or making significant life decisions.
Other reasons people would avoid, or have avoided applying for protection include a lack of trust in their providers (11%), uncertainty of who to approach (11%), concerns around their age (13%) or because they have pre-existing physical health issues (8%).
The research also explores the growing popularity of mental health wellbeing apps (such as Headspace, UnMind or Wellmind), as people proactively look after their state of mind and outlook and confusion whether these should be disclosed when applying for insurance. Over one in five (22%) said that they currently use, or have used these apps in the past 12 months, increasing to 42% for those aged 16-24, and 34% for those 25-24.
Nearly half (48%) saying that nothing would stop or has stopped them applying for protection insurance. This trend increases more prominently with age, with 51% and 66% of those 45-54 and 55+ respectively saying nothing would stop them applying for protection.
Justin Harper, Chief Marketing Officer at LifeSearch comments: “Increasing use of wellbeing and mindfulness apps shows positive movement towards people feeling more comfortable managing their mental health challenges.
“There is often a common misconception that applying for protection requires disclosing wellbeing app use to an insurer. Informal use of these apps are not officially healthcare professional-led and do not imply a mental health diagnosis, so an insurer doesn’t need to know about them. While good for the soul, they don’t need to be disclosed.
“For those concerned about how their condition might affect your application, it’s important to consult an adviser to understand their options and navigate the process effectively. Today’s evolving protection insurance criteria has evolved to better accommodate mental health challenges, and there may be more options than people think.”
