Financial planners will now be able to offer insurance to people who suffer from anxiety, post-traumatic stress, depression and other mental health conditions, with the Financial Planning Association (FPA) signing on to be a part of the 2008 mental health initiative.

The FPA joins the Investment and Financial Services Association (IFSA) in joining the scheme, together with the Australian Life Underwriters and Claims Association, ING Life, Swiss Re Life and Health, AMP and Axa Australia.

The groups have agreed that people with a history of mental illness will be offered “an appropriately modified insurance policy”, and will no longer be declined access to cover.

IFSA Senior Policy Manager Emma Gardiner told insuranceNEWS.com.au insurers will now be asking for more information from patients’ carers and clinical practitioners to assess risk more accurately. 

“Insurers will determine mental health risks on a case-by-case basis, rather than taking a ‘black and white’ approach,” she said.

Ms Gardiner says underwriters, claims experts and financial advisers will undergo further training around the mental health issue. 

The number of people who are declined cover due to a pre-existing mental health condition has halved since 2003. Most are now able to obtain life insurance cover at standard rates, or with an exclusion applying to the mental health condition.