TAL confirms upswing in paid claim benefits due to mental health

The latest claims data released by Australian life insurer, TAL, has seen mental health conditions remain the top reason to claim benefits under Income Protection (IP) or Total and Permanent Disability (TPD) covers.

In the six months from 1 April to 30 September 2024, TAL paid IP or TPD claims to 28,450 customers who were unable to work due to illness or injury; 29 per cent of these were attributed to mental health conditions including post-traumatic stress disorder (PTSD) and depression.

This figure has seen a six per cent increase from the previous year, with 23 per cent of 24,340 ill or injured customers’ claims put down to mental health reasons from 1 April to 30 September 2023.

This comes after a recent report commissioned by the Council of Australian Life Insurers (CALI) found a significant rise in the number of TPD claims submitted by 30-to-40-year olds due to mental health reasons in the last decade.

TAL also said that the amount paid to 36,200 customers across all claim types totalled $2.3 billion in the same six-month period this year, up from the $2 billion paid in the 2023 six-month period to 32,456 customers.

“Life insurance offers more than financial support when a loved one passes away. In the past 6 months, TAL benefit payments provided an important safety net to more than 28,000 Australians unable to work due to injury or illness,” TAL Chief Claims Officer, Georgina Croft, said.

“Helping Australians during their toughest times with care and compassion is the most important thing we do. Beyond a claim payment, we want to help – for customers claiming IP or TPD this is about assisting them on their recovery journey. We do this by providing the financial, emotional and physical support they need to get back to health and on with life.

“Beyond working to provide a faster, easier claims experience by harnessing innovation and AI, we continue to uplift the personalised support we give Australians navigating the claims process and through their recovery.

“We’re uniquely placed to provide and connect our customers to healthcare and rehabilitation services and to get them back to health after the unexpected happens.

“For example, TAL in-house health experts support evidence-based reviews and faster claims decisions. Once a claim is accepted, we connect customers with leading health providers including mental health services, occupational rehabilitation and cancer support to manage health conditions and help them meet their health goals.”

TAL also introduced the ‘Mental Health Assist’ program in 2021, which offers eligible customers virtual access to a psychiatrist for an to receive an assessment within 10 days. In 2023, 70 per cent of customers who took up the program received a change in diagnosis, 68 per cent changed their medication, 64 per cent changed their therapy, and 16 per cent returned to full or part-time work earlier than originally intended.

“We’re focused on supporting our customers to live full lives, whether that’s improving their functional capacity so they can better engage in everyday activities and with those important in their life or return to work,” TAL Claims Recovery and Support Specialist, Kate Tran, said.

“By connecting a person with the services they need early in the claims process – and removing the financial burden of paying for them – we can help customers on a path to recovery faster.”