Mar 07

Critical Illness Facts

Life is full of risks. Some are preventable, some are avoidable and some are unforeseeable. You cannot predict what might happen. However, with critical illness insurance you can minimise the financial impact a critical illness has on you or your loved ones as you journey through the twists and turns of life.

What would you do if you became critically ill and could not work?

Life insurance cover gives you and your family the protection you need from any unforeseen event that ultimately results in your death. But what would happen if you become critically ill and could no longer work and provide a regular income to cover your lifestyle and expenses?

Many Australians have adequate insurance in place for material possessions such as motor cars, and their home and its contents, but many still steer away from insuring the most precious thing in the world – themselves and their family.

We can be overly optimistic about our health and have the ‘she’ll be right’ attitude that falling seriously ill won’t happen to us. The reality is illness does not discriminate and it can happen at any time and to any one. In fact, it is a risk not to have adequate protection in place.

Many of us consider our material assets to be our greatest assets, but the reality is that it would be difficult to hold on to these if we didn't have our health and a consistent reliable income. The facts are:

  • around 3.67 million Australians are affected yearly by heart, stroke and vascular diseases
  • 50,000 Australians have a heart attack every year and a stroke occurs every 12 minutes
  • one in three men and one in four women will be diagnosed with a malignant cancer before age 75
  • the average age of diagnosis of the most common chronic nervous system condition, Multiple Sclerosis is 30 (87% are of working age)
  • just under 50% of Australians with arthritis-associated disability are aged 15 to 54

A sobering health check

With critical illness insurance, you can insure yourself against a range of illnesses – such as cancer or a stroke. The amount of cover you need depends on a range of factors such as age, income and debt levels. It can pay a lump sum amount or a fixed monthly amount if a specified critical illness is suffered. Its aim is to protect your lifestyle and assets in the event you suffer a critical illness and are unable to earn a regular income. This can help you remove large debts such as your mortgage and unforseen medical expenses that ordinary health insurance doesn’t cover.

Seek critical illness insurance advice

If you recognise that you are underinsured or are not covered at all, don’t wait until it’s too late. Make a commitment to you and your family and act today by talking to one of our financial advisors. We can help you find the right types of cover for your needs and set your cover at the most appropriate level.

  1. Heart Foundation, Australian Facts 2004: Heart, Strokes and Vascular diseases 2004.
  2. Cancer Council: (, Cancer in Australia: an overview, 2008 Australian Institute of Health and Welfare (published December 2008).
  3. MS Australia (2005) MS The Mystery Disease. Sydney: MS Australia 2009 Media Kit.
  4. Australia’s Health 2008, Australian Institute of Health and Welfare, June 2008.


Source: Aviva Australia, 2010. 

For further information about ensuring your finances are in place speak with your Newcastle Financial Advisor



The information contained in this document is based on information believed to be accurate and reliable at the time of publication.  Any illustrations of past performance do not imply similar performance in the future.

To the extent permissible by law, neither we nor any of our related entities, employees, or directors gives any representation or warranty as to the reliability, accuracy or completeness of the information,  or accepts any responsibility for any person acting, or refraining from acting, on the basis of information contained in this communication.

This information is of a general nature only.  It is not intended as personal advice or as investment recommendation, and does not take into account the particular investment objectives, financial situation and needs of a particular investor.  Before making an investment decision you should read the product disclosure statement of any financial product referred to in this newsletter and speak with your financial planner to assess whether the advice is appropriate to your particular investment objectives. financial situation and needs.



    About The Author