Heart disease and stroke continue to be the two most common causes of death⁵ in Australia for people over the age of 45 and accounted for over 30,000 Australian fatalities in 2012. Incredibly, thousands of Australians are underinsured or have no insurance in place to cover the expenses should they suffer a debilitating illness.

According to the Cost of Cancer in NSW ⁶report, the total expected lifetime economic cost of cancer – taking into account both the financial cost and the burden of disease (lost productivity, burden on healthcare system) – is almost $1m per person. Certainly for an individual being treated for cancer, out of pocket costs in excess of $100,000 are not uncommon. Many financial planners use a rule of thumb for calculating an appropriate sum insured which at minimum should allow for the removal of debt and the provision of one year’s income, but this is merely a starting point.

These initial figures should be considered along with the financial cost to the individual and family, and importantly the ‘true cost’ of the disease. 

You can rely on trauma insurance

Trauma insurance can cover between 10 to 50 medical events and will pay in the event you suffer a defined health trauma, regardless of your work status. It pays a lump sum to help cope and recover from serious health conditions such as cancer, strokes and heart attacks. Some insurers also offer partial payments for less serious conditions.

Medical advances have meant that our chances of surviving traumatic events are much better than in the past. However, the cost of treatment can sometimes be beyond your normal means. Without trauma cover, you may need to dip into your children’s education fund or your retirement savings; or you might even have to increase your mortgage to pay for expensive treatment.

The difference to income protection

Importantly, a trauma payment is not dependent on you being unfit to work (unlike income protection, where you need a doctor to certify your ongoing health). The diagnosis of a traumatic condition might mean that you physically could go to work, but would prefer to spend time with your family and reduce any work-related stress while you recover and consider how your future will be affected.

To make sure you don’t increase the statistics, check your policy documents to see which level of cover you hold, and speak to your financial planner if you are unsure. They can help you determine what cover you already have, what changes or additions may be appropriate and how to make them.

Speak to your Leenane Templeton Financial Planner to discuss your insurance options. Contact us at 02 4926 2300 or email success@leenanetempleton.com.au.

Source: Zurich

⁵ Leading Causes of Death, Australian Institute of Health and Welfare, www.aihw.gov.au/deaths/leading-causes-of-death.

⁶ Cost of Cancer in NSW, Access Economics Pty Limited for The Cancer Council NSW, 2007.

The post Trauma fills the gaps appeared first on Newcastle Financial Planners & Financial Advisors.

Thanks to modern day treatments, cancer survival rates are on the rise. But can you afford to be treated?

This article will help you understand the importance of trauma cover when facing serious illness.

One in two Australians will develop cancer before the age of 85 and one in five will die from the disease, according to a report from the Australian Institute of Health and Welfare (AIHW).

But while the incidence of all cancers rose by 27 per cent in the 25 years to 2007, deaths from the disease have actually fallen by 16 per cent. This proves just how far modern medicine has come and the calibre of treatments available to treat the various forms of this illness.

In fact, this report has revealed that cancer patients are increasingly living longer with 66 per cent now surviving for at least five years (for all cancers combined in the period 2006-2010) – a large increase from the 47 per cent survival rate for all cancers in the period 1982-1987.

According to Anne Bech, spokeswoman for AIHW, “While overall cancer survival is improving in Australia variations still exist between types of cancer.”

The cancers with the largest so-called survival gains from 1982-1987 to 2006-2010 were prostate and kidney cancer and non-Hodgkin lymphoma. Survival rates for lip, larynx and brain cancer along with chronic lymphocytic leukaemia didn’t improve. Between 2006 and 2010 the cancers with the highest survival rates were testicular, prostate and thyroid cancer, along with melanoma of the skin. All had a five-year survival rate of 90 per cent or more.

Sadly pancreatic cancer and mesothelioma remain incredibly lethal and have the lowest survival rate, with less than ten per cent of patients surviving five years following diagnosis.

The report also revealed that cancer sufferers, who have survived for five years, had a 90 per cent chance of living for another five years for all cancers combined. This is all good news right? Well, if you have enough money to cover all the necessary (and ongoing) treatments then absolutely! But, what if you can’t afford to be treated?

One might be forgiven for thinking that a combination of income protection insurance, private health insurance and Medicare are enough to cover the treatment of serious illness. But the truth is, in the case of cancer, where it can take years of treatment including many rounds of chemotherapy, radiotherapy and even surgery, serious illness can come at a huge cost which can mean hundreds of thousands of dollars out of your pocket.

Take Kathy for example…

Kathy, aged 41 and with two sons, was diagnosed with breast cancer. She had two rounds of surgery, chemotherapy and radiotherapy, not to mention the reconstructive surgeries on top of that. After Medicare and the health fund had paid their parts, the gap costs came to tens of thousands of dollars.

Read on to find out why she wished she had listened to her planner’s recommendation to take out trauma cover sooner.

It’s important to speak with your planner to understand the difference a lump sum payment can make in the event of suffering a pre-defined traumatic event such as cancer.

Not only will trauma cover help to meet any out of pocket expense you might face, but it could help you on the road to recovery by removing some of the added financial pressure created by the need for ongoing and often expensive treatments.

Consider the incremental increase in survival rates for all cancers combined:
■ 1982-1987 – 47%
■ 1988-1993 – 52%
■ 1994-1999 – 58%
■ 2000-2005 – 62%

Are you financially prepared for the treatments that go along with surviving serious illness?

For more information on trauma cover to put your mind at ease, contact our office and speak to our specialised risk management team.

Source: Zurich, November 2013

Disclaimer

The post The importance of trauma cover appeared first on Newcastle Financial Planners & Financial Advisors.