When we talk about pensions we often talk about longevity – the fact that people are living longer and the increased need for income in retirement. From age 65, men can expect to live an average of 23.8 years, while women can look forward to an average of 25.3 years.
While this has an impact on saving for your retirement, it also means that during your working life, being diagnosed with a serious illness is a greater risk to you than death. The Life Assurance industry claims experience tells us that you are likelier to suffer from Cancer, a Heart Attack or a Stroke before you retire than you are to die before age 65.
While most people have some form of Life Cover in place, through mortgage protection and as members of company Life Assurance schemes most are unfortunately lacking in financial protection in the event of a serious illness. There are protection options available to you. One is Income Protection, a policy that will pay out a portion of your salary while you are sick. Another solution is Serious Illness cover, also known as Specified Illness Cover.
Why consider serious illness cover?
It pays out a cash lump sum if you are diagnosed with an illness from one of the many serious illnesses covered by the plan – illnesses such as Cancer, a Heart Attack, or a Stroke (subject to policy terms and conditions). This cash lump sum would help remove some of the financial and emotional stress associated with a serious illness, affording you the opportunity to take the time off work, to help pay for specialist medical treatment or even to help cover day to-day household bills such as childcare. It may also be used to pay off debts while you are recovering. If you are diagnosed with a serious illness, you have enough to worry about. Making ends meet should be the least of your concerns.
What should you do?
You should establish what exactly you would do if you were hit by illness – Do you have some sort of cover already in place and is it appropriate? Talk to your financial advisor if you are not sure what you have.
If you don’t have any cover in place, what level of savings do you have in place and how long would these savings last if you were unable to work?
If you aren’t happy with the answer to these questions then Serious Illness cover may be a suitable option for you. The cost of this cover varies by provider and by your age, but you should be able to find a level of cover that suits your needs. Talk to your financial advisor today.
Here to help you navigate your way to financial security.
The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals in the construction sector and related industries. Our team will work with you to review your finances, explaining your options in clear English.
No jargon – just the facts.
For further information please contact Susan O’Mara via email or phone: (01) 406 8020. Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.