Can income protection help support your mental health?

Burnout is a growing concern for many Australians who are trying to juggle demanding jobs, family responsibilities and their financial commitments. The reality is that prolonged stress can result in physical and mental health problems that could get so bad that they prevent you from working.

Here’s how to recognise the signs of burnout, and how income protection insurance could be worth considering, to help give you a financial safety net.

The importance of managing your mental health

Good mental health can feed into your overall wellbeing, as well as your productivity levels at work and at home. In recent years, there’s been plenty of awareness around mental health and how you can seek out the right resources to manage stress and avoid burnout. But chronic stress, if left unchecked, can contribute to severe mental health conditions like anxiety and depression, which might require long periods of recovery.

Investing in your mental health through activities like exercise, mindfulness and professional counselling can help you prevent burnout and keep a good work-life balance. That’s why many employers have placed an emphasis on mental health support and care in the workplace. But ultimately, personal responsibility and self-care are what’s most important.

Recognising the early signs of burnout

Burnout doesn’t happen overnight. Instead, it festers – developing gradually over time, which makes it so crucial that you are able to recognise the early warning signs. Some of these could include:

• Persistent fatigue despite getting enough sleep
• Feelings of cynicism or detachment from work or your family responsibilities
• Little to no productivity and difficulty concentrating
• Physical symptoms like headaches or gastrointestinal problems

Tips to manage signs of burnout

Acknowledging these symptoms before they can snowball can help give you enough time to take proactive steps for addressing the underlying causes:

• Take breaks: Ensure you take regular breaks during work to rest and recharge. Also manage what you do outside of work hours to enrich your life, such as regular breaks from social media with a device detox.
• Set boundaries: Establish clear boundaries between work and personal life as a way to manage your wellbeing at work.
• Practice mindfulness: Engage in mindfulness activities such as meditation, deep breathing exercises, or yoga.
• Prioritise self-care: Make time for activities that you enjoy and that help you relax, such as reading, hobbies, working out, or even simply spending time in nature. Also, nourish your body and mind with foods that taste good and make you feel good, and avoid food fads that can leave you feeling deflated.

Seeking help and building support systems

In order to help manage burnout, you may need both professional and personal support. Reaching out to a counsellor or psychologist can give you some helpful insights and coping mechanisms for your situation. Trusted family and friends can also provide plenty of emotional support by reminding you that you’re not alone.

Your employer might also have mental health resources, such as Employee Assistance Programs (EAPs) that include confidential counselling. Even today these resources are often underutilised, but they can be instrumental in helping you manage workplace stress and prevent burnout.

How income protection insurance can potentially cover mental health events

Income protection insurance is a type of policy that will replace a portion of your income if you’re unable to work due to sickness or injury, which may include a mental health event or certain psychological conditions. However, it's important to check the specifics of your policy in the product disclosure statement, as cover for mental health events can vary between insurers. Some policies may have exclusions or require a diagnosis from a healthcare professional. So be sure to weigh all your options before deciding on a policy.

What mental health events can be covered by income protection insurance?

Understanding what mental health conditions are covered by income protection insurance is crucial for ensuring you have the support you need during challenging times. Income protection insurance may cover the following mental health conditions:

• Stress-related disorders: Conditions caused by chronic stress that impact your ability to work.
• Generalised anxiety disorder: Persistent and excessive worry that interferes with daily activities.
• Major depressive disorder: Severe depression that affects your mood, energy, and ability to function.
• Post-Traumatic Stress Disorder (PTSD): A condition triggered by experiencing or witnessing a traumatic event.

Check the details of your policy to see if there are any exclusions or waiting periods that apply. Some policies, for example, might exclude pre-existing mental health conditions or require evidence from not just your doctor, but your insurer’s doctor, to assess the validity of your claim.

Important considerations when choosing income protection insurance

• Policy details: Check out the relevant product disclosure statement to see if there are any exclusions or waiting periods that apply.
• Pre-existing conditions: Some policies might exclude pre-existing mental health conditions or require further health reports or information, depending on the circumstances and policy.  
• Premiums: The amount you pay in premiums will depend on your age, job type, income, your health, etc. Policies generally have level premiums, which cost more to begin with but don’t change over time, or stepped premiums that start of costing less but increase over time as you age. 

Understanding these details can help you make informed decisions and ensure you have the necessary cover when you need it most.

Tips for lodging an income protection insurance claim

If you experience burnout or another mental health condition that stops you from working, here are some steps to successfully lodge an income protection claim:

• Gather up all the paperwork: Collect medical reports, payslips and other necessary documents required to support your claim.
• Check the waiting periods: Most policies have a waiting period before benefits can be paid (e.g. 30 to 90 days).
• Submit your claim: Make sure all forms are completed accurately and submitted as soon as possible.
• Keep in touch: Communicate with your insurer and respond promptly to any requests they have for further information.

For a more detailed guide, learn how to make an income protection insurance claim and the steps to consider before filing your claim.

Feel in control

The best way to safeguard your family's future is by prioritising your own well-being. Take the first step today by exploring the potential benefits of income protection insurance, including the potential tax deduction implications.

Ready to learn more about Guardian Income Protection Insurance and secure your peace of mind? Request a quote today and take control of your financial future.