Preparation is the best weapon

By AMP Financial Planner [Robert Inukihaangana]*

“You have cancer” are words that you never want to hear but when you do, you can be faced with questions like: Why me? What will happen to my family? How do I fight this? How much will it cost? How will my family cope financially if I can’t work or, worse yet, if I don’t survive?

According to the Cancer Council of Australia, cancer is the second leading cause of death with approximately 43,000 people estimated to have died from the disease in Australia in 2010 and about 114,000 new cases diagnosed during the year.

Being told that you have cancer is a big enough blow to your mind, body, emotions and overall spirit without having to worry about your finances. As a person living with cancer, your first priority is to get well again and spend as much time with your loved ones as possible. However, it can be hard to concentrate on these priorities when you have bills to pay, a family to feed and mounting medical costs.

Many people believe that taking out life insurance is for the aged, those who are ill, have children or are thinking about retiring. This is a myth.

An illness like cancer can strike when you least expect it and one of the most responsible actions you can take is to be financially prepared. Similar to private health insurance, taking out life insurance when you are young and healthy ensures lower premiums for the lifetime of your policy.

So what life insurance policies should you be considering?

·         Trauma Cover

Trauma Cover provides a lump sum payment if you’re diagnosed with a specified trauma condition. Trauma Cover is designed to help pay for your medical costs and living expenses, providing you with some financial security during the important recovery process.

The types of conditions that Trauma Cover may cover you for include: heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancers, dementia and stroke or paralysis.

·         Income Protection

Income Protection, also known as salary continuance, usually pays a monthly benefit of up to 75 per cent of your regular income if you’re too sick or injured to work.

This type of insurance is designed to help you continue to pay the mortgage, children’s school fees, utility bills and buy food, clothes and other day-to-day expenses.

·         Total and Permanent Disablement (TPD)

TPD cover provides a lump sum payment if you’re totally and permanently disabled. This cover will usually help you pay for medical expenses, repay major debts and ensure that you are looked after in the future.

·         Death Cover

Death cover works by making a lump sum payment to your family if you were to die, or, under some policies, are diagnosed with a terminal illness. It offers you the security that if the unexpected were to happen, your family would have financial protection.

For anyone who has large debts such as a mortgage, it is important to take out death cover, irrespective of your age.

Making sure you have the right cover will help give you peace of mind now and financial support in the unfortunate incident that you experience disability, illness or death.

If you would like professional advice about which life insurance option is most suitable for you and your family, you could consider consulting with an accredited financial planner. Your financial planner will investigate how much cover you currently have and how much you should have by taking into consideration your personal circumstances and needs. 

To get in touch with a professional AMP Financial Planner, go to www.amp.com.au.

*[ Robert Inukihaangana] is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.

Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.