The high prevalence of depression in Australia is generally a surprise to many. But according to statistics from The Black Dog Institute,  a world leader in the diagnosis, treatment and prevention of mood disorders such as depression, one in seven Australians will experience depression in their lifetime; and at any time, more than a million Australians may be suffering from it¹.

Depression is known to affect all ages, cultures and socio-economic classes, with significant impacts.

According to the Whitecloud Foundation, a body that aims to increase resources and improve access to support suffers, families and carers who live with depression:

• Depression-associated disability costs the Australian economy $14.9 billion annually²

• In Australia more than 6 million working days are lost each year²

• Depression costs the Australian community over $600 million each year in treatment costs²

While some underestimate the seriousness of this issue, the World Health Organisation estimates that by 2030, depression will become the largest health concern in both the developed and developing nations.

 

Personal cost

As with many mental illnesses, there is a negative stigma associated with depression and sadly this often results in many people not being properly assessed and treated.

Considering the statistics, it is highly likely that you, a friend or a family member will struggle financially due to missed work days or even have trouble keeping a job, because of depression. However, many Australians wouldn’t even think about Income Protection for this illness.

 

What does Income Protection Offer?

Income Protection can provide cover for a portion of your income if you are unable to work for a period of time due to sickness or injury. It is designed as a safety net so that you can avoid having to make the difficult decision of possibly drawing down on your assets or taking on more debt if the unfortunate were to occur. It will not replace your entire income, however you can gain up to 75% of your salary in monthly payments, which can greatly decrease financial stress and enable you to keep your mortgage repayments and continue to provide for your family.

 

Are you still eligible for Income Protection if you suffer from depression?

Yes, Income Protection policies are available for those with a mental illness. It’s important to be upfront about your condition, so the appropriate policy can be recommended to you. This will ensure there are no surprises, in the event a claim is made.

 

Income Protection isn’t only for mental illness, it protects you on a range of areas

Income Protection Insurance will cover you if you can’t work due to illness or accident, so when you think about it, there are a myriad of reasons why you should consider having Income Protection.

 

Protecting yourself is Tax Effective

Income Protection can be tax deductible so as we lead into the end of the financial year, reducing your tax liability and pre-paying some or all of your Income Protection premiums may be worth investigating.

 

Seek Advice

Seek advice from a qualified Financial Adviser and ensure your needs are taken into account and the appropriate level of cover is determined.

 

¹ Black Dog Institute Annual Report, 2012

² White Cloud Foundation, Depression Facts & Beyond Blue