In 2024, life insurance companies paid out a record $2.2 billion in claims related to mental illness, up from $1.2 billion five years ago. Stress, burnout, and workplace bullying are among the leading reasons claimants cite for being unable to return to work, along with divorce, financial difficulties, and mood disorders such as depression.
One study showed that permanent disability claims by those in their 30s increased by 732% between 2013 and 2022, now making up 36% of all claims. This unprecedented increase highlights the growing burden of mental illness and raises concerns about the long-term financial sustainability of life insurance products designed to provide this support.
Industry leaders are calling for a comprehensive approach to address this issue, including better mental health support services, workplace interventions, and insurance product reforms to ensure the continued availability and affordability of coverage for mental health conditions.
Published: Thursday 9th April, 2026
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
