At a glance:
- Mental health claims are on the rise, highlighting the importance of accidental insurance coverage.
- Accidental insurance can provide financial protection in the event of an unexpected injury or accident, including mental health issues.
- Understanding the coverage options and exclusions of accidental insurance policies is crucial for protection from potential financial losses.
Accidental death insurance provides financial protection to individuals and their families in the event of an unexpected death caused by an accident. As mental health issues continue to rise, accidental death insurance is becoming increasingly important to ensure financial security for loved ones left behind.
In this blog, we will explore the relationship between mental health and accidental deaths and why accidental death insurance is essential to financial planning for individuals and families. We will also discuss how to choose the right accidental death insurance policy and provide tips for finding affordable and comprehensive coverage.
Why is mental health becoming a bigger issue?
Mental health issues in recent years
According to the Australian Bureau of Statistics, one in five Australians experienced a mental health condition in 2017-18 [1]. Additionally, the number of people who died by suicide in Australia in 2019 was 3,318, an average of nine people per day.
According to the Australian Institute of Health and Welfare, over two in five Australians have experienced a mental disorder at some point in their lifetime, and one in five experienced a mental disorder in the past 12 months (AIHW, 2021).
The COVID-19 pandemic has further contributed to the rise in mental health issues. The uncertainty and stress caused by the pandemic have led to an increase in anxiety, depression, and other mental health problems. A report by Hall & Wilcox found that mental health claims have increased by 30% during the pandemic, with many claims related to COVID-19 stressors [2]. These statistics indicate the increasing prevalence of mental health issues in Australia.
The connection between mental health and accidents is also worth noting. People experiencing mental health issues may be more prone to accidents due to impaired cognitive function and impaired judgment.
The importance of accidental death insurance
Also known as accidental death and dismemberment (AD&D) insurance, it is a type of insurance policy that provides coverage in the event of accidental death or serious injury. The policy pays out a benefit to the policyholder or their beneficiaries in the event of accidental death, dismemberment, or loss of vision or hearing. The policy may also provide benefits for certain types of injuries, such as burns, paralysis, or coma, depending on the policy terms.
How Accidental Death Insurance Differs from Other Types of Insurance?
Accidental death insurance differs from other types of insurance, such as life or health insurance, in that it only covers accidental deaths and injuries. Life insurance typically covers death due to any cause, including natural causes, while health insurance covers medical expenses for illness or injury, regardless of the cause. Accidental death insurance may also be less expensive than life insurance, as it only covers accidental death or damage, which is less likely to occur than death from natural causes.
Benefits of Having Accidental Death Insurance
There are several benefits to having accidental death insurance. Firstly, knowing that you and your loved ones are protected from accidental death or injury provides peace of mind. Lastly, accidental death insurance can provide additional financial security to your family and loved ones, helping to cover the loss of income or support due to your accidental death or injury.
How Accidental Death Insurance Can Help Cover Mental Health Treatments
Mental health treatments, such as therapy and medication, can be costly, and not all health insurance policies cover them fully. This is where accidental death insurance comes in. Many accidental death insurance policies offer coverage for mental health treatments, including therapy and medication. This can be a huge relief for those who need mental health treatment and don’t want to worry about the financial burden.
Examples of How Accidental Death Insurance Has Helped People with Mental Health Issues
Accidental death insurance can provide much-needed financial assistance to individuals and their families in the event of an unforeseen and tragic accident. This is especially important for those with mental health issues who may be more susceptible to accidents or impulsive behaviour.
For example, consider a person who suffers from severe depression and experiences a sudden, unexpected episode. During this episode, the individual may engage in impulsive behaviour that results in a fatal accident. In such cases, accidental death insurance can provide financial assistance to the deceased’s family, helping to cover funeral expenses and other costs associated with the accident.
Similarly, accidental death insurance can help individuals struggling with substance abuse or addiction. These individuals may be at higher risk for accidental injury or death due to impaired judgment or reckless behaviour. In the event of an accident, accidental death insurance can provide a financial safety net for their loved ones.
How Accidental Death Insurance Can Provide Financial Security During Times of Need?
Accidental death insurance can provide financial security during times of need by providing a lump sum payment to the beneficiary in the event of the policyholder’s unexpected death. This payment can help cover expenses such as funeral costs, medical bills, and other financial obligations that may arise after a sudden loss.
In the case of mental health, accidental death insurance can provide additional financial security for those who may be struggling with mental illness and have a higher risk of accidental death. This is particularly important as mental health issues can often lead to suicide or unintentional overdose, resulting in a sudden and unexpected loss.
Accidental death insurance can provide peace of mind for the policyholder and their loved ones. It can offer financial security in the event of an unexpected loss, alleviating some of the stress and burden during an already difficult time.
At Aspect UW, we offer online quotes for accidental death insurance in Australia. Visit our website to learn more about our coverage options and get a free quote today.
How to choose the right accidental insurance policy?
Choosing the right accidental insurance policy can be a daunting task, but it’s essential to make an informed decision to ensure that you’re adequately covered in case of an accident.
Here are some factors to consider when choosing an accidental insurance policy:
Coverage: It’s important to evaluate the coverage offered by the policy to ensure it meets your needs. Check the policy’s coverage limits, exclusions, and other terms and conditions to ensure you understand what you’re getting.
Cost: The cost of an accidental insurance policy can vary depending on the coverage, deductibles, and other factors. Compare different policies to find the right balance between coverage and cost.
Reputation: Choose an insurer with a good reputation for paying claims promptly and efficiently. Check reviews and ratings online to understand the insurer’s reputation.
Customer service: Look for an insurer with excellent customer service and support. You want to be sure you can contact the insurer easily in case of an emergency or file a claim.
Additional benefits: Some accidental insurance policies may offer additional benefits such as coverage for disability or medical expenses. Consider these benefits when choosing a policy.
When evaluating different accidental insurance policies, here are some questions to ask:
- What is the coverage limit?
- What exclusions are there?
- What is the cost of the policy?
- What deductibles apply?
- Are there any additional benefits included?
- What is the claims process like?
- How long does it take to process a claim?
- What is the insurer’s reputation?
Here are some tips for finding affordable and comprehensive accidental insurance coverage:
- Consider bundling policies, such as accidental insurance, with trauma insurance to save money.
- Consider a higher deductible to lower your premiums.
- Look for discounts such as a no-claims discount or multi-policy discount.
- Work with an insurance broker who can help you find the right policy for your needs.
- By considering these factors, asking the right questions, and following these tips, you can choose an accidental insurance policy that provides the coverage you need at an affordable price.
In conclusion, accidental insurance is becoming increasingly important due to the rising issues of mental health claims. Mental health issues can lead to accidents and injuries, making it critical to have adequate financial protection. Accidental insurance can help cover medical, rehabilitation, and other related expenses, providing a safety net during a difficult time.
We encourage our readers to consider purchasing accidental insurance to protect themselves and their loved ones from the financial burden of unexpected accidents. With Aspect UW, you can easily get an accidental death insurance quote online and find a policy that meets your needs and budget.
In addition to purchasing accidental insurance, it is also important to take care of your mental health and seek professional help when needed. Mental health is a crucial component of overall well-being, and taking steps to maintain it can prevent accidents and improve quality of life. We hope this blog has been informative and helpful in understanding the importance of accidental insurance in the context of rising mental health claims. Thank you for reading, and please feel free to contact Aspect UW for any further questions or assistance.
Mike Wallis
Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.
