The AMP Planner Protection Poll has found that 71 per cent of financial planners polled had seen an increase in the number of clients who disclose a personal history of mental illness.
The growing number of financial planners seeing an increase in client disclosure of mental health history reflects the increased incidence and awareness of this health issue in Australia.
AMP Director of Wealth Protection Products Michael Paff said, “With one in five Australian adults experiencing a mental disorder in any year1, and general awareness of mental illness increasing, planners and customers are acknowledging the significant impact it can have on people’s lives.”
Mr Paff said financial planners are taking the impact of mental illness into account when it comes to applying for Income Protection cover, including in their approach to client disclosure of these illnesses.
“Financial planners need to be flexible in engaging with their clients during the process of completing a personal health statement. This includes being able to recognise how comfortable the client is with personally disclosing potentially sensitive health history and looking at other options for the client where available.
“For example, AMP’s ‘easywrite tele’ service allows planners to offer clients the option of discussing their health history directly with AMP if they do not feel comfortable disclosing this with their planner.”
More than half of planners polled (53 per cent) said that early access to the underwriter to discuss the client’s situation was most likely to make a difference in a client’s application for Income Protection cover.
“This is about improving access to insurance. Talking to the underwriter before lodging an application for Income Protection cover allows planners to ensure they have gathered all the required information, directly or indirectly, and can improve the client’s experience of the underwriting process,” Mr Paff said.
However, despite increased disclosure, only just over a third of planners polled are seeing clients with a history of mental illness gain access to Income Protection cover.
“The industry has worked hard to improve access to insurance for those with a history of mental illness and AMP is committed to removing barriers to cover for as many Australians as possible. However, there’s still room for improvement on this important issue,” Mr Paff said.
- “Have you seen an increase in the number of clients who disclose a personal history of mental illness?”
- “Are you seeing more clients who present with a personal history of mental illness, gain access to Income Protection cover?”
- “Which of the following is most likely to make a difference in their application for insurance: client’s understanding of the impact of mental illness on an application; early access to the underwriter to discuss the client’s situation; insurer collecting personal statement directly from the client; or none of the above?”
AMP Planner Protection Poll: Results at a glance
Have you seen an increase in the number of clients who disclose a personal history of mental illness?
Yes – 134 (71%)
No – 55 (29%)
Total – 189
Are you seeing more clients who present with a personal history of mental illness, gain access to Income Protection cover?
Yes – 67 (35%)
No – 122 (65%)
Total – 189
Which of the following is most likely to make a difference in their application for insurance?
Client’s understanding of the impact of mental illness on an application – 34 (18%)
Early access to the underwriter to discuss the client’s situation – 101 (53%)
Insurer collecting personal statement directly from the client – 36 (19%)
None of the above – 18 (10%)
Total – 189