Cancer and Insurance
As your insurance broker we have to talk to you about the risks you don’t want to think about and what insurance you can have in place just in case the unthinkable might happen. That might mean talking to you about losing something precious like your jewellery or watch, or it might mean talking to you about what happens if you are burgled or your home floods. There are some subjects like death and cancer that as individuals we avoid like the plague, particularly when it comes to talking about them in relation to our own death and that we might get cancer.
1 in 2 people in the UK will get cancer *
** Recent headline news but let’s look a little deeper:-
1 in 2 people are diagnosed with cancer in their lifetime but cancer survival rates have doubled in the last 40 years.
Around half of patients now survive the disease for more than 10 years
6 out 10 people (or 65.3% of people, to be exact) that have diagnosed cancers are aged over 65
The most common cancers, accounting for over half the registrations in the UK are:-
breast cancer 15.2%
prostate cancer 13.4%
lung cancer 12.7%
colorectal cancer 11.5%
Children and young adults (0-24 years) account for only 1 in 100 registrations
Breast cancer accounts for 44.7% of all cancers amongst females aged 30 to 59
So What Insurance Cover Should You Have in Place For Cancer?
We all know insurance costs money and there is normally a
limit to our budgets. If you decide not to insure against a risk, that is a choice. However, it is so important that this is an informed choice. We recommend you become informed with the facts before making your choices.
Critical Illness Cover
The first time most people might consider an insurance that would pay out if you are diagnosed with cancer, is when they take out their first mortgage. There is normally a conversation about Life Insurance but also about earlier Critical Illness. At this point there is a realisation that Critical Illness cover can be expensive particularly if you want to cover the whole of your mortgage. As a result many may decide not to have any Critical Illness at all. If this applies to you, what you may like to consider is the full amount of life cover needed to pay the mortgage off and then a smaller amount of Critical Illness cover that fits within your budget.
Critical Illness cover normally pays out a lump sum if you are diagnosed with an illness as specified in the policy. That normally includes cancer but won’t always cover every type of cancer as some are no longer life threatening.
You receive a lump sum of money that you could use to pay off some, or all, of your mortgage. If you think about it you are more likely to use it to help deal with the financial consequences of being off work through illness. It may also allow you to achieve some of your lifetime ambitions.
Insurance companies often cover your children at no additional cost.
Income Protection Policy
These don’t pay out a lump sum but instead pay you an income to replace that lost through either illness or disability. They don’t specifically cover cancer but rather they cover any illness that could cause you to be off work. From a financial planning perspective this should be the first insurance cover you have as without it you can’t pay for anything else!
For more information on how these policies work please read the information sheet:-
Private Medical Insurance (PMI)
Private Medical Insurance is designed to get you back to health if you suffer from what’s known as an acute illness i.e. it’s not chronic (ongoing). In the UK PMI is a top up to the NHS and it may mean that you get treated more quickly and have access to treatment or drugs not available through the NHS. Most of the PMI providers are aware that the biggest worry we have is cancer and they therefore provide cover specifically for cancer.
For more information on how PMI policies work please read the information sheet:-
Next time you play heads or tails think about the chance of being diagnosed with cancer and if you have enough insurance in place to meet your needs. If you want to make an informed decision about insurance cover give Steven Clemence a call on 01822 855 555 or drop him an email.