Mental Health Limitation

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Mental Health Limitation In insurance mental health limitation in insurance is a clause in an insurance policy that restricts coverage for mental health conditions. In general mental health limitation is a condition that affects a person's ability to think, feel, or behave in a healthy way. Mental health limitations can be caused by a variety of factors, including genetics, brain chemistry, life experiences, and trauma. There are a number of reasons why insurance companies impose mental health limitations. One reason is that mental health conditions are often more expensive to treat than physical health conditions. Another reason is that insurance companies are concerned about moral hazard, which is the idea that people will consume more healthcare services if they are not required to pay for them. Most policies have a 24-month mental health limitation. In other words, benefits for mental health conditions such as depression, anxiety or bipolar disorder will only be paid for 24 months. Your long term disability policy may limit your period of eligibility if your disability results from a psychiatric condition. This is commonly referred to as a Mental Illness Limitation. Notably, the limitation may affect you even if you are not disabled due to a psychiatric condition. If your policy contains a Mental Illness Limitation and you are disabled solely due to a psychiatric condition, your benefits will most likely stop when the maximum allowable period expires. Unfortunately, the severity of your mental illness will become irrelevant after the maximum allowable period expires. If your policy contains a Mental Illness Limitation and you have a combination of mental and physical conditions, your benefits may be in danger after the maximum allowable period expires. Often times, the future of your benefits depends on the wording of your initial application and supporting documents. Individuals who do not suffer from psychiatric conditions are usually not impacted by their policy’s Mental Illness Limitation. However, mental health limitations have been criticized for being discriminatory and for denying people the care they need. In recent years, there has been a growing movement to eliminate mental health limitations from insurance policies. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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