Taking the time to talk about Critical Illness Insurance
Tuesday, June 22nd, 2010It seems like there’s always time to talk about the little things in life, but discussing the big issues is never as easy.
If you think about what’s really important to you -family, security and your way of life – you realise the need to keep them safe.
Illness isn’t a subject anyone likes to dwell on but the unfortunate reality is you or someone close to you will be critically ill at some stage.
The financial cost of this is something you can avoid. Research from the University of Canberra’s National Centre for Social and Economic Modelling shows living expenses during a time of critical illness can be about $80,000 a year, not including the cost of medical treatment and rehabilitation.
For many people, the scenario gets worse as their illness prevents them from working and they lose their income, then their savings and investments. But it doesn’t have to be this way.
Easing the financial pain
Many people aren’t aware you can insure yourself against critical illness.
Critical Illness (CI) insurance provides a lump sum if you become critically ill so you can pay your mortgage or anything else that needs funding. It takes away the financial pressure so you can concentrate on getting better.
But CI insurance isn’t just about financial protection, MLC policies include access to Best Doctors, a worldwide network of medical experts that consult with you and your doctor on your diagnosis and treatment.
Elizabeth‘s story
Elizabeth Gould knows the value of critical illness cover.
The mother of two children was diagnosed with breast cancer in her late thirties and had a double mastectomy.
Dealing with this illness was emotionally and physically tough for Elizabeth, but given she had CI insurance, the financial strain was significantly lessened.
“I think one of the first times I got upset was when I received the bill for my mastectomy,” Elizabeth said.
“It was an operation that costs thousands and the Medicare component was hundreds. I was such a long way out of pocket but I had great cover. I remember thinking, I never wanted to have cancer and now I’ve paid so much money to fight it.”
While it’s not something anyone wants to think about, Elizabeth’s grateful she took the time and initiative to plan for the unexpected.
“You don’t see cancer coming. There was no medical history in my family and I was only 38 when I was diagnosed,” she said.
“If you think there’s always time to take out insurance later on, then it’s already too late.
“Imagine never being able to work again because of illness or accident and then ask how you would support your family. If you can, then you have enough insurance.”
Finding out how to protect your family’s future with insurance doesn’t have to be difficult or expensive.
Having the right insurance cover can be simple and cost-effective, allowing you to get on with enjoying life, because you no longer have to worry about what might happen tomorrow.
In a previous post “Protecting whats important to you …” we explored some of the value based discussions which are important for those still preferring to walk the underinsurance tightrope; again I’d implore those people to reconsider their position.
An appropriate wealth protection strategy is the foundation of any long term wealth creation strategy and financial plan. Contact us, if you would like to revisit the safety net you have in place while you walk through the tightrope that is life.
Where to from here?
If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.
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Dan Smith is self employed and is for many families their trusted Financial Adviser based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.
This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.
Dan Smith and Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060