22 October 2026
Disclosing anxiety or depression to an insurer shouldn’t feel like a gamble
Anxiety and depression are by far some of the most common conditions disclosed on the protection applications we see1, suggesting they’re also the disclosures clients worry about most.
Nearly 80% of consumers expect that declaring a mental health condition would push up the cost of their cover, according to recent research from the Institute and Faculty of Actuaries (IFoA)2 while some 65% fear they would be turned down altogether.
For life and critical illness cover, the reality is very different. From what we see, nearly 9 in 10 people are accepted and offered cover at standard rate3. We decline less than 4% of cases straight through our underwriting rules engine, and those tend to be outliers4.
Income protection is another story. That is where I think we, as an industry, need to focus next.
What happens when a client declares anxiety or depression
If a client discloses anxiety, whether or not they are in treatment, they’ll get standard rates in most cases. To us, they’re not high risk. The exceptions are usually where there is a concurrent issue, such as a history of drug or alcohol misuse.
Even then, we don’t automatically assume that a mental health condition alongside another medical condition is worse than either on its own. And a declaration of depression doesn’t mean a loading is inevitable.
Where a case is ambiguous, it’s referred to an underwriter. More often than not, we then go directly to the customer for more information rather than requesting a GP report. We have done this since day one, for good reason.
Mental health support through the NHS is harder to access than ever. Many people rarely see the same GP twice, so they have no relationship with a doctor and little chance to discuss these things comfortably. And their records may not be up to date. The person living with the condition usually has far better insight into it than a doctor they see once every couple of years.
Fewer questions, fairer decisions
When the industry first adopted underwriting rules engines, many of us tried to be clever. Some mental health rules allocated points: one for this answer, 2 for that. It looked precise. In practice it felt like guesswork, and it meant asking far more questions than we needed to.
Our aim now is simple, which is to reach a decision we’re comfortable with in as few questions as possible. Clients don’t want to go into unnecessary depth. They want to know their information will be used properly.
The balance is between giving fair outcomes and providing cover to as many people as possible without delay and avoiding the further stress of having to answer even more questions.
Sensitivity matters too. Applicants accept they must be asked once about suicide or self-harm. But many journeys used to ask that question again after a client disclosed anxiety or depression. Answering twice is uncomfortable, especially sitting alongside an adviser. Insurers, including us, are now removing that repetition.
Still work to do on income protection
For life and critical illness, a client disclosing anxiety or depression will very rarely result in a loading, but income protection can look quite different.
We generally don’t increase the premium on income protection. Instead, in line with standard industry practice, we may apply an exclusion for the mental health disorder.
The reason is the nature of the contract. Income protection pays out based on time off work, which is why reinsurers tend to be more nervous about it, since mental health conditions like depression and anxiety are a leading cause of sickness absence5.
There is a case for exclusions. The client can still secure cover, they know exactly what they’re getting at the outset, and they’re not paying more. But it’s also apparent that the clients who may need income protection most are often those being offered the narrowest cover.
Part of the answer to this lies in keeping people well. If we can support someone early enough that they don’t need time off work, that is a better outcome for the client, the insurer, and the reinsurer. Over time, that is what should give the whole market confidence to offer broader terms.
Support only works if people use it
When I started in this industry, added-value services didn’t really exist at all. Now most insurers offer 24/7 GP access, as well as tailored support packages that include things like emotional wellbeing consultations and counselling.
However, offering these services is one thing, and getting people to use them is quite another – especially for mental health. There is still stigma associated with these conditions, and many people still suffer in silence.
Clients need to know that using a support service after their policy starts won’t be held against them. We won’t revisit their terms or cancel their cover because they asked for help. Providers and advisers need to say that clearly and often.
A good adviser will make sure clients know about every benefit that comes with their policy, not just the headline cover. But it’s also true that an adviser with hundreds of clients can’t be expected to remind each one regularly. Insurers share that responsibility, and we could do more to show advisers real examples of where early support has made a difference.
Never finished
Because anxiety and depression are so common on applications, we can’t afford to set our rules and leave them for 2 years. We review the data month on month, check how the rules are performing and listen to feedback from advisers. When outcomes drift, with too many loadings or too much evidence requested, we change course.
The message for advisers is to encourage clients to disclose honestly. On life and critical illness, the outcome is far better than most of them fear. And keep pushing insurers, us included, on income protection. That is where the next round of progress needs to come from.
Source:
1, 3, 4. Guardian applications between 1 July and 30 September 2026.
2. Institute and Faculty of Actuaries, The anxiety of access: bridging the gap between mental health and financial services, August 2026.
5. Office of National Statistics, Sickness absence in the UK labour market: 2025, May 2026.
Andy’s article was also published in IFA Magazine on 13 October 2026.