October is known internationally as Breast Cancer Awareness month. You’ve probably seen the ads on TV or in the newspaper, and there are a number of companies doing numerous activities to promote breast cancer awareness.
It is estimated that one in nine women will be diagnosed with breast cancer before the age of 85. The chances of being diagnosed with breast cancer are increasing, with new breast cancer cases rising from 5,291 in 1982 to 12,567 in 2007. It’s estimated that by 2015, this number will increase to over 15,000 (source : Cancer in Australia: an Overview 2010, pg 12).
Chances are that you know someone who has been touched by breast cancer. I’m 42, and some of my friends have had breast cancer. At our son’s school there are ladies who’ve had cancer and survived, and there are other people who’ve lost loved ones to cancer at a too-early age.
A quick scan of the death notices in the newspaper will show you people who have died young from cancer. A common belief is that they all thought it wouldn’t happen to them.
The good news is that the cancer mortality rates are declining. So whilst more women are diagnosed with breast cancer, the chances of dying from it are reduced.
If you know anyone who has had a debilitating illness like cancer, you’ll know that it affects their lives in a number of ways – not just the physical issues of treatment, but emotional issues due to the worry and stress of the situation. Invariably, there’s also a financial cost that is borne.
As part of our financial coaching process, we look at the risks associated with your wealth accumulation, and suggest strategies to minimise the effects of those risks. Whilst it’s impossible to stop someone being diagnosed with cancer, it is possible to help with the financial impact of such a diagnoses.
Consider the example of Rob and Julia, both in their 40’s. One day Julia noticed a lump in her breast, went to her GP to get it checked out and, after a few tests was diagnosed with the early stages of breast cancer.
She underwent treatment to get the lump removed, and also had a course of chemotherapy. She was off work for over six months whilst all this was going on.
The financial impact of this on her family was huge. The loss of her income made a big difference in their day-to-day spending, and they had to cut back to survive. Rob took some time off work to look after Julia, but after his sick leave ran out he had to return to work, as they couldn’t afford for him to have leave without pay when they were already without Julia’s income.
Eventually Julia was able to return to work and the family returned to two incomes, but the damage was done.
There are ways to reduce the financial impact of a trauma claim.
If Julia had an income protection policy, she could have received a benefit of up to 75% of her income for every day that she was off work, after a short waiting period. Whilst it would have still been a reduction in their income, it wouldn’t have been as significant an impact as the loss of all her income. This income would have enabled them to still maintain a similar income while dealing with the cancer diagnoses.
A trauma insurance policy would also have helped. This would provide a lump sum upon diagnoses of the breast cancer. This lump sum could have been used in a number of ways:
- Cover medical bills and out of pocket expenses.
- Provide a lump sum to facilitate travel interstate or overseas for any experimental treatment that may be available.
- Reduce debts so the family didn’t need to worry about losing their home.
- Enable the other partner to take time off work without pay.
If the worst happened and Julia died from her illness, life insurance would pay a lump sum to her family that could be used to repay all debts, secure her children’s future education, and provide additional money to enable Rob to spend more time with his kids if he chose to work part time, or to hire a nanny to look after the kids if he still intended to work full time.
It can happen to you!
I’m an optimistic person and I don’t want to think that something like this will happen to me. But it could. Cancer doesn’t discriminate and you can lead a healthy lifestyle and still be diagnosed with it. That’s why I’ve made sure I have sufficient income protection, trauma and life insurance to look after my family (and me) in the event something like this happens.
What about you?
What would your financial situation look like if you were diagnosed with breast cancer? Do you have a large cash buffer to cushion against the loss of income? How would you keep paying your mortgage?
At Impact Financial Coaching we’re experienced at helping people work through these questions. We’ve done it with many clients over the years and have helped them put in place strategies that protect them from the financial risks that a serious illness can bring.
Call us today for a free analysis of your situation, where we’ll be able to give you some insights on how you can manage your finances better.
One more thing…don’t leave it until it’s too late. There are reports that during the Victorian bushfires homeowners were calling insurance companies trying to arrange house insurance cover as the fires were advancing on their homes. The insurance companies won’t provide cover in this sort of scenario.
It’s similar with trauma cover and other personal insurances. If you’ve already been diagnosed with a form of cancer, however insignificant it may have been, you’ll find it difficult to get any insurance cover that will protect you against that kind of illness. The insurers won’t take the risk.
So don’t delay. This is something that needs to be looked at whilst you’re healthy, not when you need it the most.
Call us today on 8364 0066 to find out more.
