In May the world observed Mental Health Awareness Month, while June marked Men’s Mental Health Awareness Month,providing an opportunity to reflect on a topic that has moved from the margins of healthcare into mainstream discussion. While increased awareness is undoubtedly positive, it also highlights a significant reality: Mental health conditions are becoming increasingly prevalent, both globally and in South Africa, with important implications for society, healthcare systems, and the life insurance industry.
According to Discovery Health Medical Scheme, in 2024, one in seven members (15% of the overall scheme population) registered or claimed for a mental health condition.
This is a 46% increase from 2012 when it was one in ten (10%). More evidence of this impact can be seen in Liberty’s 2023 claim statistics with suicide claims increasing by 50% compared to 2022. While an Ipsos World Mental Health Day Survey done in 2024 found that 79% of South Africans surveyed think about their mental wellbeing often. This was higher than the global country average of 60% and the highest among the 31 countries surveyed. There is clearly growing recognition on both sides (life insurers and clients) of the importance of mental health.
Mental Health and the link to physical wellness
A consequence of poor mental health is that it can lead to a direct impact on physical health. The American Psychological Association notes that chronic stress and the hormones associated with it can disrupt your body’s processes and increase the risk of various physical problems such as digestive issues, headaches, heart disease, high blood pressure and strokes. With such a myriad of health problems that can come later down the line, it is clear why life insurance companies have increasingly taken notice of mental health and that clients and their planners should too.
How Life Insurance can provide protection against the financial impact of poor mental health
While life insurance cannot prevent mental health conditions, it can play a critical role in protecting individuals and families from the financial consequences that often accompany serious mental health challenges.
Disability and Income Protection: protecting earning power
The biggest impact of poor mental health is often not death but the potential inability to work. Mental health conditions are significant contributors to temporary and permanent disability claims in South Africa; In 2025 claims for these conditions were among the top 5 for Discovery, Sanlam & Momentum
Conditions such as severe depression, burnout, and anxiety disorders may affect a person’s ability to perform the duties of their occupation or maintain consistent employment. In severe cases, extended periods away from work may become necessary.
Disability benefits and income protection products can help by:
- Providing a lump-sum disability payout where policy definitions are met.
- Replacing a portion of lost income through monthly income protection benefits.
- Covering ongoing living expenses while the insured focuses on treatment and recovery.
- Protecting retirement savings from being depleted during periods of illness.
Life Cover: protecting families when they need it most
Severe mental health conditions can contribute to an increased risk of self-harm. Life cover provides a lumpsum benefit to beneficiaries following the death of the insured life, helping to ensure that dependants remain financially secure during an already difficult time.
In today’s socio-economic climate, being covered for mental health conditions should be seen as an investment in your future security, ensuring that a family’s well-being remains protected, even if mental health challenges arise.
