How Insurance Can Help You Cover Mental Health Costs

Mental health is something we're all learning to talk about more openly, and that’s a good thing. While mental health issues are affecting an increasing number of New Zealanders, we’re also becoming more comfortable having those conversations and seeking the treatment we need. Across all ages, people are realising that asking for help is a sign of strength.

Right now, half of our young people aged 15 to 25 are dealing with anxiety or depression, and one in four Kiwis experiences poor mental health and emotional well-being. The impact of COVID-19 and the cost of living crisis have both had an impact on businesses and individuals, putting additional pressure on the public healthcare system, which is already at capacity.

This is where medical and income protection insurance can make a real difference in your mental health journey. It helps fill the gaps, supporting you from diagnosis to long-term treatment, and even offers financial protection during tough times. Think of it as a safety net when you need it most.

Diagnosis and Treatment Coverage

Medical insurance can help with the costs of mental health diagnosis and treatment, making it easier to access care when you need it. Many insurance policies cover sessions with mental health professionals such as psychiatrists and clinical psychologists. These sessions may include assessments, ongoing therapy, and the creation of individualised treatment plans. Access to private mental health services can mean shorter wait times and more specialised care.

In some cases, medical insurance also helps with more intensive treatments such as rehabilitation programs for those dealing with severe mental health issues, including substance use disorders or eating disorders. This extended care can be crucial in addressing long-term mental health needs.

Some insurance policies provide support to maintain good mental health, such as providing a set number of sessions with a counsellor or well-being coach per year.

Financial Support if You Can’t Work

Mental health challenges can sometimes affect your ability to work. If you are unable to work due to a diagnosed mental health condition, income protection policies may provide payments during the period you are unable to work. This income cover offers financial support during your recovery period, helping to reduce the stress of lost wages. For people dealing with depression, anxiety, or other debilitating conditions, income cover can provide vital financial stability while they focus on their health.

Life Insurance and Suicide Coverage

While it’s not commonly discussed, life insurance policies in New Zealand may provide coverage in the event of death by suicide, typically after the policy has been in effect for a certain period. This is an important aspect to consider, as life insurance can offer peace of mind for families in the most challenging of times. It’s worth reviewing your policy or speaking to your insurance broker to understand the specific terms around mental health-related claims in your life insurance policy.

Help with Mortgage Payments and Business Cover

When mental health impacts your ability to work, financial commitments like mortgage payments don’t just disappear. The good news is that some income insurance policies offer mortgage cover to help with repayments if your mental health prevents you from working.

For business owners, mental health can also affect your employees. If one of your team members can’t work due to mental health issues, business insurance can help cover the financial impact, keeping your business stable during a challenging time.

Pre-existing Conditions? You Still Have Options

Concerned about whether you’ll be covered if you have a pre-existing condition? While some policies might have restrictions, many insurers do offer coverage after a waiting period or with certain conditions in place. It’s always best to chat with a broker to explore what options are available to you—you might be surprised by what’s possible.

Take the First Step

The fact that we’re all more open about mental health now is a great step forward, and more and more people are reaching out for the support they need. Income and medical insurance can be a really helpful resource along the way, offering everything from diagnosis and treatment to financial protection.

If you’re curious about what your insurance covers or want to explore your options. Your nearest adviser will be happy to help – you can find them here. And if you need mental health support right now, your GP can connect you with the right services.

For additional support, here are some useful links:

●      Lifeline 0800 543 354 or 09 522 2999 or free text 4357 (HELP)

●      Suicide Prevention Helpline 0508 828 865 (0508 TAUTOK0)

●      Youthline 0800 376 633 or free text 234

●      Find an extensive list of helplines at Mental Health Foundation NZ.