What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Mental health matters

ARTICLE BY

  • Patrick Lawlor
  • Financial Writer
  • Investec

SHARE THIS POST

By many accounts, mental health issues around the world are on the rise. According to the WHO, factors such as social media use, isolation and loneliness, and the knock-on effects of the Covid-19 pandemic have caused a rise in mental and emotional distress in Western countries.

The impact is also seen in developing countries, where economic, political and environmental upheaval are weighing heavily on people’s psychological wellbeing. About 20% of the world’s children and adolescents have a mental health condition, according to the World Health Organization, with suicide the second leading cause of death among 15 to 29-year-olds. Approximately one in five people in post-conflict settings have a mental health condition, and mental health conditions are now the cause for one in five years lived with disability.

Costs of mental illness

It’s important to clarify the difference between mental health and mental illness. Mental health is something that we should all strive to maintain, while mental illness refers to a range of clinically diagnosed conditions that require professional treatment.

In South Africa we are well aware of the impact on our sense of wellbeing caused by issues such as load shedding, infrastructure decline and poor service delivery by the public sector, crime and economic uncertainty, as well as high inflation and interest rates – to name just some of the factors. It’s reasonable to think that these factors will remain sources of stress and uncertainty for South Africans from all walks of life for a while yet.

It’s hard to pin down numbers for the impact of mental illness on our economy, but some estimates put the cost at R160 billion in terms of illness, absenteeism, and in extreme cases, premature mortality. And that’s not taking into account some of the knock-on effects of poor productivity and poor personal decision-making.

But how do independent financial advisers tackle this growing problem? As an archetypical client-centred industry, the best advisers will at least intuitively understand how mental health can impact the decision making of their clients. For example, clients may put off important decisions or actions, such as paying bills, or ensuring that their tax, insurance and retirement plans are up to date. They may also be more prone to impulse spending, rather than saving or investing, and their mental state may affect their work performance and earnings.

Furthermore, they may be more prone to making poor lifestyle choices (eating a poor diet, not exercising, alcohol abuse, etc) that affect their physical health by triggering conditions such as high cholesterol, hypertension, and other lifestyle illnesses, and which over time increase their cost of insurance.

Compassionate intervention

Unfortunately, even when the signs are there, it’s not always easy for an adviser to intervene. Is the relationship strong enough between adviser and client to have a heart-to-heart conversation about mental health or to suggest the intervention of a clinical specialist? This assumes that the signs are easy to identify. In today’s fast-paced world, it’s often difficult for a busy adviser to pick up issues their clients are going through until it’s too late.

This could be about to change however, and technology can certainly help. In a recent podcast series hosted by Investec Life, a number of experts detailed the role that specialised apps can play – using digital biomarkers and machine learning – in early detection of conditions such as depression, anxiety and ADHD. These technological tools are helping employers and individuals navigate the stressors of modern life. There’s no doubt that these sorts of tools will become more prevalent and integrated into the advice process over time, allowing advisers to help their clients in new ways.

What can advisers do right now? Here are some suggestions:

  • Include the mental health discussion – discretely of course – into your engagement with your clients, so any issues can be highlighted early in the process
  • Suggest the use of apps and tools that help clients to detect issues as they arise and seek professional help
  • Ensure that your client is invested in the right products upfront so that if mental health issues arise, the overall financial plan is robust enough
  • Finally, invest in your own mental health and that of your colleagues as a priority – not only does this make good business and personal sense, but it also breaks down the barriers between adviser and client, where advisers can share their own experiences and encourage clients to open up about their own issues.

While it may not always be easy at first, embarking on a mental health journey with your client can be an uplifting experience leading to personal growth that benefits all.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.