Rise in income protection claims for mental health issues

There has been a sharp increase in people claiming on their income protection insurance policies for psychological issues.

People cited psychological issues on a third of the medical claims made to Aviva Life and Pensions last year.

Income protection insurance provides a regular cash payment that replaces part of a person’s lost income if they cannot work due to a medium- to longterm illness, injury or disability.

There was a 7pc increase in claims for psychological issues last year when compared with the previous year, Aviva said.

Income protection claims as a result of mental health issues were higher among women than men.

Orthopaedic issues came in next, with men making more of these claims.

The percentage of claims paid out because of cancer, neurological and cardiac issues was broadly similar to the previous year.

The number of claims driven by people suffering from either long-Covid or complications having had Covid, some of whom had underlying medical conditions, reduced to 3pc from 5pc in 2022, the insurance and pensions provider said.

The average age of claimants is 46 for women, with men typically 49.

The youngest claimants were a man aged 25 and a woman aged 23.

The average length of time that Aviva income protection customers are out of work is now seven-and-a-half years.

The longest active claim in payment is 32 years, with the customer aged 29 when the claim commenced.

The company also paid €250,000 in early intervention and rehabilitation support to its income protection customers through the year, up from €200,000 in the previous year.

Some 163 customers who were diagnosed with a specified illness were paid €18m last year. Specified illness cover is a form of insurance that pays out a tax-free lump sum if a policyholder is diagnosed with a serious illness during the term of the policy.

Breast cancer and other cancers has been the primary reason for specified illness claims from women for some time, Aviva said. But the incidence of breast cancer reduced by 3pc last year following a stark 21pc increase in 2022.

This was followed by other cancers, cardiac issues and strokes.

Aviva’s Siocha Costello said: “The value of holding life, specified illness and income protection cover is only fully realised when a claim is made.”

She said the reality is that, in the event that we experience illness or injury during our lifetime, we must continue to pay our bills.