By Ebony Van Hamburg, Paraplanner
What an astonishing figure. With odds like this it is almost a necessity in life now to consider what would happen if someone in your family was diagnosed with cancer. Hopefully you are diagnosed early enough so it is treatable and you can return to your normal, everyday life, but even this may still require treatment and perhaps time off work.
What would happen?
What would happen if the sole income earner of your family was diagnosed with cancer and needed time off work to undergo treatment for a few months?
I can imagine that this would be one of the most stressful times in your life, emotionally and financially. With no income coming in and only bills to pay this could seriously impact your financial situation. Time off work may leave a hefty hole in your current bank balance, not to mention future goals and savings.
How can you protect your family?
While life insurance will protect you/your family should you pass away and Total and Permanent Disability Insurance will also provide protection, these insurances will not cover you should you be diagnosed with an illness where you can return to your current job. And while Income Protection Insurance will cover you should you be unable to work due to a sickness or injury there is usually a waiting period on these policies which may mean you don’t receive a payment for two or three months or even longer in some cases. Income Protection insurance also only covers up to 75% of your current income so any additional medical expenses will need to be funded through any savings you may have.
There is another type of insurance many don’t know about: Trauma Insurance. This insurance will cover you with a lump sum for traumatic events including cancers, heart attack, diabetes – the list of illnesses covered is quite extensive. The cover shouldn’t be limited to the main income earner. If your stay at home parent was diagnosed with a condition, in some cases, the primary income earner would want to take time off from work to care for their sick partner. Children’s trauma cover is also an option.
If you are young or single, consider what you would do
We know there is no minimum age for cancer or many other illnesses. Would you rely on your retiring parents or other friends or family to fund your medical costs and living expenses? Refer to the article on our website ‘I’m 26 years old, I don’t need life insurance’ if you think you are too young to be thinking about insurance cover.
Trauma Insurance can provide you with peace of mind financially should you or someone in your family be diagnosed with one of the approximately forty conditions which trauma insurance can protect against. It probably won’t happen today, maybe not tomorrow but it might one day.
Remember, we never need insurance until we need it. This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider you financial situation and needs before making any decisions based on this information.
At Blueprint Wealth, we offer financial advice that is right for you, no matter what stage of life you are at. Contact us to set up a plan that is right for you.
*This report is for: 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer by the age of 85 http://www.cancer.org.au/about-cancer/what-is-cancer/facts-and-figures.html
*Ebony Van Hamburg is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706. Blueprint Planning Pty Ltd (ABN 78 097 264 554), trading as Blueprint Wealth, is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Ltd, Australian Financial Services Licensee and Australian Credit Licensee.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact Blueprint Wealth on (08) 9423 0300 if you would like more information.