A second thought isn’t given to insuring mobile phones, cars, pets, holidays and homes yet when it comes to protecting your financial position from the effects of being unable to work, it appears little importance is given by the majority of the population.
In fact, according to statistics, only 11% opt to insure themselves from the inability to generate income due to a critical illness, compared to almost 40% who insure their pet. What is at risk?
A critical illness or accident is unpredictable
Critical illnesses are never welcomed and rarely anticipated. They can come knocking at any time and if you and your family are unprepared there is a lot at stake.
Doctors and dentists are in the fortunate position to take home high salary packages and in general can afford to invest their hard earnings into property at the higher end of the market.
What would happen if the income that supports the mortgage payments was suddenly unavailable? Would there be a sufficient income from other sources to ensure you didn’t lose your home and have to change your lifestyle?
Taking advice based on statistics
Sadly, we live in a world where illness is prevalent.
- Almost 150,000 people a year suffer a heart attack
- A third of heart attack sufferers survive
- But many are unable to return to full time work
- More than 1 in 3 people will develop some type of cancer in their lifetime
- 4 out of 5 cancer patients will experience a loss of income
- Cancer is attacking under 50’s as well, with 1 in 20 women being diagnosed and 1 in 35 men, at this younger age
- Over 150,000 people have a stroke every year in the UK
What does Critical illness insurance cover?
Medical advances means survival from a critical illness or severe accident is more likely, yet this can mean long periods away from work in recovery.
Critical illness insurance is designed to pay off your mortgage and other debts to minimise any disruption to your lifestyle at an already difficult time, should you be diagnosed with a critical illness on the policy list.
Who needs Critical illness cover?
Really anyone with financial commitment should consider Critical illness cover, particularly if you:
- Do not have sufficient savings to meet financial obligations in the event of sickness
- Any employment benefits package you have is not comprehensive enough to cover a period of time off work, should it be required
- Self-employed practitioners and directors of their own limited companies will most likely not have any sort of benefits package
If you have a partner or spouse who earns enough to fully cover any financial commitments you share then Critical illness cover may not be required. Taking guidance from a professional financial adviser is always suggested to ensure you have considered all angles.