Look beyond the titles, crowns, and palaces, and you’ll find the royals are no different from any other family. This has never been more apparent than with the recent announcement that King Charles is receiving treatment for cancer. This was shortly followed by the news that Catherine, Princess of Wales, is also receiving preventative chemotherapy after cancer was detected during abdominal surgery.
Sky News reports that online searches for cancer advice spiked after both the King and Catherine made their announcements to the public. Their stories have resonated with people from across the world, because a critical illness like cancer can affect anyone, at any time.
So, what could the financial implications be for your family if you were faced with a similar situation? Read on to learn how a cancer diagnosis could affect your finances and the plans you could put in place today to protect your family’s wealth.
A cancer diagnosis can create financial pressure if you’re unable to work
A cancer diagnosis is a stressful time for anyone, and one of the reasons it can be so stressful is the financial pressure it can create for you as a patient. You may need to stop working while you receive treatment, which can lead to several financial difficulties, including:
- Difficulty paying your mortgage and other bills
- Needing to pause your pension contributions, making it more difficult to achieve your long-term financial goals
- Incurring additional costs, such as transport to and from hospital and other caring needs.
Financial pressures such as these could create significant stress as you undergo treatment. So, it’s sensible to consider measures you could put in place today to mitigate the impact of an illness like cancer on your wealth.
Financial protection can help you to protect your wealth from the implications of a critical illness
Fortunately, there are plenty of financial protection policies that can help you to prepare for the possibility of an illness like cancer in the future.
Critical illness cover could provide a lump sum payout if you’re diagnosed with cancer
By taking out critical illness cover, you will receive a lump sum payout if you are diagnosed with a condition covered by the policy within the specified term. This could help you to cover the cost of your mortgage and essential bills, pay for private treatment, or perhaps alter your home to be more accessible.
Income protection is another option that may be helpful
Income protection can provide a monthly payout for a set period of time if you are unable to work due to illness or injury. The payout will be a percentage of your earnings (usually between 50% and 70%) and you can choose how long you would like the payouts to be guaranteed for. This might be for one year, three years, or even for the rest of your life.
These are just two examples of policies that could offer practical financial support if you’re unable to work due to a critical illness. It could also provide peace of mind that a future illness need not have a negative effect on your or your family’s financial wellbeing.
Caring for someone with a critical illness could also affect your finances
Financial protection can offer practical help in the event that you are diagnosed with cancer, but what if a family member needs your help supporting them with a diagnosis?
Sadly, financial protection wouldn’t cover your bills if you needed to stop working to provide care, but there are still some measures you can put in place to reduce the financial impact this might have on you.
An emergency fund can be a helpful way of ensuring you have cash reserves to draw on to cover your bills and expenses if needed. We recommend holding a minimum of three to six months’ worth of expenses in an easy access savings account. This could help you to cover essential costs if you needed to reduce your hours or stop working for a period of time to support a loved one through an illness.
If you are employed, your employer may have policies in place to support you during times like these. Perhaps they can arrange for you to work reduced hours or take some unpaid leave while you focus on helping your family. Some may offer group insurance policies that give access to support such as counselling or remote GP appointments for you and your spouse or dependants.
By making the most of the opportunities your employer offers, you could make the process of supporting your family through the cancer diagnosis easier.
Get in touch
Our team of independent financial advisers in Lewes is here to support you. If you’d like to learn more about how we can help you to put measures in place to provide peace of mind and practical financial help in the event that you or a loved one is diagnosed with a critical illness in the future, please get in touch.
You can email us at financial@barwells-wealth.co.uk or call 01273 086 311.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
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