Are mental health conditions covered by Income Protection insurance?

Mental health conditions like depression, anxiety, stress, and burnout are covered by most Income Protection policies in Australia, but often with specific limitations. Historically, mental health conditions have represented a significant proportion of IP claims, leading insurers to introduce restrictions. Most modern policies limit mental health claims to a maximum benefit period of 2 years, regardless of your chosen benefit period for physical conditions. This means if you have a benefit period to age 65 for physical disability but develop severe depression, you may only receive benefits for 2 years maximum. Some policies have even shorter limitations, such as 12 months. The 'two-year mental health limitation' applies per claim or per lifetime, depending on the policy wording. Some policies exclude mental health conditions entirely if they're primarily caused by stress, workplace disputes, or redundancy. Pre-existing mental health conditions are carefully scrutinized, with longer exclusion periods common. However, if your mental health condition is secondary to a physical condition (for example, depression following a cancer diagnosis), it may be covered under the physical condition without the mental health limitation. Given the prevalence of mental health issues, understanding your policy's specific mental health provisions is crucial. Some insurers offer better mental health coverage than others, which should be a key consideration when comparing policies, particularly if you have a history of mental health concerns or work in a high-stress occupation.