Jillian* was 41, fit and strong when she was diagnosed with breast cancer. Naturally it was a devastating blow. Surgery and a lengthy course of chemotherapy would be required to help her get well again.
As a senior manager with an IT company, Jillian would require time off work for the surgery as well as for each chemo session plus recovery time. And while she had sick leave at her disposal, her absences from work would use it up quickly.
Jillian also wanted to be able to choose the medical specialists who cared for her, to help give her the greatest chance of a full recovery.
The lost income caused by not being able to work – combined with the gap expenses not covered by her health insurance – would demand considerable financial resources.
Income protection & trauma insurance
Fortunately Jillian had both income protection and trauma insurance cover in place. Because she was having surgery, the waiting period for her income protection cover was waived, and she was able to begin receiving a payment of 75% of her salary straight away.
Jillian’s trauma insurance also paid her the full sum insured of $200,000 upon diagnosis of the cancer.
This meant that she had the peace of mind of knowing that all of her expenses would be easily covered. She also had the comfort of being able to select the medical specialists of her choosing knowing she could cover their fees, even if they charged well above what she could claim under Medicare or her private health insurance, which was often the case.
With nearly three decades helping clients with their personal insurance requirements, at 5 Financial, we’ve seen many clients face situations such as Jillian’s. And while nothing takes away the upset and discomfort of being seriously ill, having a financial buffer in place means there is at least one less thing to worry about.
We generally advise clients to consider having income protection as well as trauma insurance in place. Income protection cover replaces up to 75% of your income in the event that you are injured or disabled and unable to work for an extended period, following an initial waiting period, commonly of 14 – 30 days.
Trauma insurance pays a lump sum on the occurrence of covered medical conditions, such as heart attack, stroke, cancer, multiple sclerosis, surgery and many other illnesses. It provides the financial means that can allow you to focus on your recovery. Many clients have also used the proceeds to ‘reward’ themselves with a holiday, after enduring a lengthy treatment regime.
Suffering a serious illness is not something anyone plans for. But being financially well prepared is one way of reducing the stress that can come with it.
Contact us if you would like to know more about income protection or trauma insurance, or to revisit the adequacy of your current cover.
The information in this article is general in nature. You should obtain professional advice tailored to your circumstances before taking any action. *Name changed to protect privacy.