8 April 19

April Newsletter

Welcome to our April Newsletter. This month Advice for Living is focusing on Insurances – Life can often throw in a few curve balls. No one expects sudden death, accident or illness. What if the unthinkable did happen? How would you, your family or perhaps your business cope financially?

Safeguard Your Financial Security If You Suffer Critical Illness

It can take years of treatment to recover from serious illnesses such as cancer or heart disease. This is long enough to put you into financial hardship. So if you think that life insurance alone is enough life cover for you, it may be time to rethink your insurance needs.

Your chances of getting a critical illness

Unless someone in your family has been diagnosed with a critical illness such as cancer, heart disease or stroke, you may think that it won’t happen to you. So what are your chances of suffering from a critical illness? The following facts and figures from Australian national health organisations reveal that the chances may be higher than you’d like to think: 1 in 6 people will suffer a stroke in their lifetime and it is a leading cause of disability.

[1] 1 in 2 men and 1 in 3 women will be diagnosed with cancer by the age of 85.

[2] 2 out of 3 families will be affected by cardiovascular disease, and disability resulting from the disease prevents 1.4 million people from living a full life.

[3] Another interesting fact is that many people now survive serious illnesses that used to be fatal thanks to advances in medicine and technology. For instance, the National Cancer Council has reported that although cancer is the leading cause of death in Australia, the survival rate for many common cancers has increased by 30% in the past two decades.

It may not cost you your life, but it will cost you

You may end up paying tens of thousands of dollars in medical treatment and rehabilitation costs if you are ever diagnosed with a critical illness. What’s more, you may be unable to work during treatment so there may be periods where you lose your income.

To cope financially during this time, you will need to have significant savings behind you or one or more assets that can be liquidated to cover medical bills and, possibly, day-to-day living expenses. However, it’s rare to come across people who have accumulated enough wealth to cover these expenses. Usually, the significant costs associated with a critical illness take a huge toll on a person’s financial situation.

Get cover for peace of mind

Rather than setting yourself back financially, it may be a good idea to insure yourself against the risk of suffering from a critical illness. Trauma insurance, which is also known as critical illness cover, pays you a lump sum benefit when you suffer a critical condition specified in your insurance policy. This benefit is paid regardless of your ability to return to work. Different trauma insurance policies cover different illnesses and they can often be purchased as a stand-alone policy or along with a life insurance policy. Having a critical illness insurance policy in place can mean the difference between maintaining your financial security or experiencing severe financial hardship.

[1] The National Stroke Foundation website, accessed February 2013

[2] Cancer Council Australia website, accessed February 2013

[3] The National Heart Foundation website, accessed February 2013

Many Australians acknowledge they are more than likely under-insured. Don’t wait until it is too late. Make a commitment to you and your family and find out what types of cover would be appropriate for your needs. Please call 03 8370 5307 to arrange a time to discuss.