Does Disability Insurance Cover Mental Health? Analysis

Approximately 1 in 5 US adults have a mental illness, with 14.2 million having a serious condition as of 2020.

Mental health issues may impact your ability to work, but disability insurance could help cover lost income. Here’s what you should be aware of.

Disability insurance
Does disability insurance cover mental health: Photo courtesy (Sapling)

Mental Health Issues That Are Covered by Disability Insurance

Disability coverage policy not only safeguards against physical ailments but also covers certain mental health conditions.

According to the Social Security Administration’s Disability Benefits Center, various mental health disorders qualify as disabling conditions.

Additionally, many private insurance providers recognize these illnesses for claims.

However, the key criterion is whether the issue affects your work and income.

Common mental health issues like depression, anxiety, mood disorders, or panic attacks often qualify for disability insurance, as they are among the top reasons for disability claims, according to LIMRA.

How To Claim Disability Benefits Based on a Mental Health Issue

Qualifications for a mental health disability claim are much like those for a physical one.

To be eligible, you’ll typically need a medical diagnosis from a professional.

If a diagnosed mental health condition affects your work, disability coverage policy likely covers it, with some conditions.

Insurance companies acknowledge that mental health problems can be just as disabling as physical ones, so the process of making a claim isn’t more difficult.

Both policyholders and carriers are increasingly ensuring that mental health issues are covered by disability insurance.

How Disability Insurance Protects Your Income in the Event of a Mental Health Issue

Due to the high rate of mental illness in the U.S., getting disability insurance is smart for financial security during work disruptions.

If you can’t work due to a qualifying mental health condition, disability insurance usually covers up to 60% of your income. It can last from weeks to years, even until retirement.

This benefit can cover various expenses, from mortgage and credit card payments to essential items like baby formula and groceries.

Disability coverage policy is your financial safety net if injury, illness, or mental health problems keep you from working.

It prevents you from resorting to credit card debt, personal loans, or using your retirement savings.

Given the rising mental health issues in the U.S. and the lack of paid leave options, disability policy ensures your finances stay stable when you need to prioritize what’s most important.

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