Despite greater awareness of mental illness and depression in the profession, many lawyers face financial uncertainty following a diagnosis. Legal professionals seeking to insure themselves against loss of income may find it either difficult, or very expensive, to have insurance following diagnosis or treatment.
In fact, any Australian diagnosed with some form of mental illness will find it difficult to insure their life or loss of income. “If an individual has a history of mental illness or depression the insurer will view that as being a higher risk,” said Moray & Agnew partner and national head of life insurance, Gerry Davies. An insurer can then choose to do one of three things, insure the person with exclusions, insure the person at a higher premium or refuse to insure that person. “As I understand it, more people who have a mental illness are being accepted by insurance companies, with exclusions,” he added.
Legal practitioners have the highest rate of depressive symptoms (15.2% as opposed to an average of 10.5%) in Australia, according to a study completed by Beaton Consulting and BeyondBlue in 2006. Speaking at the Tristan Jepson Memorial Lecture last year, Federal Attorney General Robert McClelland said mental illness - notably depression - “is one of the main reasons that barristers and legal professionals make claims through their income protection insurance”. He suggests there may be a role for the insurance industry to play in the early intervention of depression, particularly as some legal professionals may choose to go undiagnosed to avoid complications with insurance companies.
The Mental Health Council of Australia (MHCA) and BeyondBlue presented a submission to the Treasury in May on unfair terms in insurance contracts. A survey completed by these organisations found that it was difficult for those with mental illness to access life insurance, particularly income protection cover. A number of respondents reported that they were informed that they were ineligible for insurance cover while they were receiving treatment for their mental illness, but might become eligible if they ceased treatment for a certain period of time. “This does not promote good management of mental illness and discourages people with mental illness from undertaking long term treatment,” the report said.
According to the Investment and Financial Services Association (IFSA), the number of applicants who were declined insurance because of an existing mental health condition halved between 2003 and 2008. However, consumers continue to contact BeyondBlue and the MHCA with concerns about their access to insurance or their experiences with insurance companies.
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