 As much as we’d like to, there is no way to predict how our futures will unfurl. Illness can sneak up on us, or hit at random, and the effects can be devastating on your finances if you aren’t properly insured. As much as we’d like to, there is no way to predict how our futures will unfurl. Illness can sneak up on us, or hit at random, and the effects can be devastating on your finances if you aren’t properly insured. Critical Illness (sometimes called Trauma) cover provides you a buffer for if the worst were to happen. This lump sum amount allows you to cover the costs that may come with your illness. Think of Go-Fund-Me's that you’ve seen recently. Have they met their goal? How long did it take them to? People take these out when the unimaginable happens: disability, cancer, illness. The unfortunate truth is that only 12% of medical and emergency crowdfunding campaigns reach their goal, with 16% receiving no donations at all. You can think of Critical Illness (CI) as a guaranteed Go-Fund-Me. No need to wait for donations that may or may not roll in. In the event of an illness, your CI cover can be claimed upon and used to soften the costs associated with a traumatic illness. What does it cover? The below graph showcases the most common Critical Illness claims amongst insurers.  As you can see, cancer, cardiovascular, and nervous system illnesses are the most common amongst insurers. As you get older, the likelihood of these illnesses increases, making cover even more vital. Though we’d like to hope that none of these illnesses will happen to us, statistically we may have one of these events occur. That is why it’s so important to ensure that we are adequately protected. Every insurer is different, which is why it’s important to speak with an adviser to ensure that your cover is appropriate for your needs. What is the cover for? CI cover is not intended to be used to cover long term expenses, such as facilitating an early retirement due to an inability to work. The lump sum is instead intended to provide you with the resources to handle the immediate impacts of the illness. These could include:
Below shows the average cost associated with common illnesses. These can differ according to the severity of the illness and your lifestyle.  For Example: Mike is 56 and has experienced a heart attack. He works in the mines as a diesel fitter. According to the above table, Mike’s recovery will take approximately 3 months. During this time, he will be unable to work due to the physical nature of his job and will need to see a specialist regularly. Mike also requires adjustments to his house to make daily tasks easier for him, such as a ramp and bathroom fittings. His $100,000 of CI cover allows him the time he needs to recover by subsidising his wage and allowing for renovations and specialist appointments. He is not out of pocket and therefore was able to retain his lifestyle and settle back into work after his recovery. In summary, Critical Illness insurance ensures that you aren't left waiting on donations that might never come, should the very worst occur. If you’d like to learn more about how CI cover can assist in protecting you, please feel free to reach out to the office. Any advice provided in this article is general advice only and has been prepared without taking account of your personal objectives, financial situation or needs. Before acting on any such general advice, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.
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