AIA continues to see a rising trend in the number of mental illness claims, which are the most prevalent for professional and white-collar workers – being more than twice as common compared to heavy blue-collar or other hazardous occupations.
“This aligns with the Australian Institute of Health and Welfare’s report on Australia’s Health 2018, which outlines that persons aged 16 to 24 have the highest prevalence of mental disorders. The report also found that suicide and self-inflicted injuries and anxiety disorders were the leading causes of burden in young people aged 15–24,” the group said.
Industry data also reveals that people in lower socioeconomic groups are at greater risk of poor health.
AIA said that on a per capita basis there are more claims in regional areas relative to metro areas in NSW, Victoria and Queensland.
“AIA pays more group insurance claims in Queensland than in any other state, and for disability claims, there is a noticeable skew toward higher claim numbers in regional Queensland,” the company said.
“On employment, more than 600,000 young workers under 25 do so on a full-time basis, which is 42 per cent of the under 25 working population. Of those, almost half are full-time workers in blue-collar jobs.
“For young Australians from 2013 to 2017, 20 per cent of births were to a mother under 25, and more than 10 per cent to fathers under 25. More than two-thirds of households are also headed up by a person under 25 with debt, with a quarter of under 25s classified as ‘over-indebted’, meaning they have debt worth at least 75 per cent of their assets.”
As an adviser that has been involved in mental health claims for nearly 20 years, I’m not surprised. This isn’t an insurance company issue, it is a society issue. While society is lied to about nutrition to fatten the wallets of the food processors, our children will suffer.
The causal link between the war on fat, both food and body, has demonstrated significant physical harm with heart disease, cancers, and diabetes. Yet, on the whole, the impact on the brain and brain development has largely been ignored. And it should not be.
The impact of poor quality nutrition on the developing brain is well known. Take an impacted brain and add the stress of modern life and there is no wonder there is an increase in mental health issues. And when I say poor nutrition it’s not malnourishment, its the wide array of minerals, fats, oils, proteins, and vegetables that are missing in the average young persons life, through their development and especially teens and young adult years.
And for those that are saying it’s easy to fake a TPD from a mental health claim, nup. It would be easier to jump out of a moving vehicle and break your back than have medical specialists sign this off. If they are TPD from mental health, there’s a hell of a lot of stuff going on with that person I would not wish on my worst enemy.
Sorry, but this strange press release looks like a strategy by the Group Insurers ( read FSC) to get the Govt to reverse the latest ( Productivity Commission inspired ) policy for opt-in for death/TPD cover under 25s. The argument seems to be there are NOW more GROUP mental health claims under 25, and in Qld in particular. Is that a subtle hint that the Govt, with just a 2 seat majority, might just be vulnerable to a political campaign in those Qld marginal seats to reverse the policy. Everyone thinks group default cover for under 25s is profitable, so this item appears to be designed to kill that notion and apply pressure. Geez, I am cynical !
I suspect many of these claimants actually told their doctor and insurer they were unlikely to ever work again, rather than vice versa. For people short of cash, the default TPD in their super looks very tempting if all you have to do is fake a mental illness to get it. Mental illness is so sacrosanct now, no doctor or insurer would ever dare to question self reported symptoms.
It’s far easier for insurers to pay up, avoid any controversy, and pass the costs onto other policyholders via higher premiums.
Expect claims more from Financial Planners soon as the changes get too much for some to bear
This should be shocking to everyone. To be told under the age of 25 that you are unlikely to work in your lifetime due to this condition is a life sentence in itself. Our society is failing these people. To be clear, I’m not criticising the insurer.