About Mental Health Disability Insurance

According to the National Institute of Mental Health, one in four Americans, or 26.2 percent of the adult U.S. population, suffer from a mental disorder within any given year. As a result, mental illness has become the leading cause of disability. Mental health disability insurance provides financial assistance for those affected by mental disorders.

Identification

• Individuals who suffer from mental disorders may find it difficult to carry out the requirements for normal daily living. Areas of daily living affected may include holding down a job, managing money and running a household. According to the American Journal of Psychiatry, disorders such as bipolar personality, major depression, schizophrenia and many personality disorders can significantly hamper a person's ability to function. Government-sponsored programs can provide assistance in the form of mental health disability insurance. Eligibility requirements include medical proof, as well as a history of past work experiences.

Low-Income Category

• Government-sponsored mental health insurance programs serve individuals who fall within different income categories. According to the American Journal of Psychiatry, Supplemental Security Income, or SSI, acts as a type of disability insurance for individuals who fall within the low-income category. To be eligible, a person must be 65 years or older and unable to perform within a job capacity for at least 12 months. Screening processes involve multiple stages in which a person's level of impairment and functioning are assessed. As of 2007, the average benefit allotment for SSI insurance amounted to $623 a month.

Employment History

• Social Security Disability Insurance, or SSDI, acts as a type of mental health insurance for individuals who've contributed to payroll taxes through years of gainful employment, according to the American Journal of Psychiatry. This option only replaces a portion of a person's earnings, which must exceed $900 or more per month. The eligibility screening process for SSDI and SSI are the same. As of 2006, the average benefit allotment for SSDI insurance amounted to $978 per month.

Emergency Assistance

• Temporary Assistance for Needy Families (TANF) --also government-sponsored--can act as a catch-all program when other insurance options fail. According to the American Journal of Psychiatry, the screening processes involved with SSI and SSDI insurance are intensive and consequently few individuals actually qualify for these types of assistance. And while the TANF program is intended as an emergency cash assistance fund, individuals who've been denied SSI or SSDI may actually qualify for short-term assistance through TANF. Those who do qualify must agree to work a certain number of hours per month.

Considerations

• The benefit allotments provided by mental health disability insurance oftentimes cannot sustain the expenses incurred by an individual or family. According to the American Journal of Psychiatry, these amounts reflect an ongoing concern regarding the potential abuse of these government-sponsored programs. Screening processes can last anywhere from one to three years before an actual determination is made. Oftentimes benefit awards can be time-limited in terms of a certain number of months or years, and may also require individuals to work, as is the case with TANF. As a result, many individuals who do qualify for insurance benefits may be unable to meet a program's qualification requirements.