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Point of View Archive

It’s time to talk about the ‘what if’


With the current NHS stop smoking campaign well underway, Stoptober and Breast Cancer Awareness month taking place, it seems that we are increasingly reminded that we need to look after our health.

Living a healthy lifestyle and being in good health is something that the majority of us aspire to achieve; however, if unforeseen situations were to arise because of serious illness, being financially prepared and having a plan in place can make all the difference.

When you have dependents, such as children or a partner to take care of, becoming seriously ill can be one of your greatest fears. Who will earn the income to pay the mortgage if you had to take a long period off work for treatment? How would you afford to pay for extensive childcare if you were physically unable to care for little ones? In these situations friends and family might often step in to help for the short term, but illnesses such as cancer can arise unexpectedly and go on for many months.

Many people choose to have the peace of mind that should they face serious illness, they would not have the added burden of financial stress at that time. They have in place an insurance policy that will pay a sum to assist with financial commitments such as a mortgage, rent or debt repayments. This means they are able to focus their energy on their health and getting better.

Critical illness insurance can be an important part of a family’s planning for the unwanted and unexpected. Many policies have the added advantage of covering children too so, if a child becomes ill, financial provisions can be made for a parent to take time off work to commit to their recovery, a situation which is rarely considered.

There are a wide range of companies that offer critical illness cover. How much you pay depends upon the amount of money you would like to claim in the event of diagnosis of a specified illness, and also on your medical health history. It is important to note that different policies cover different illnesses or treatments, so you should look at the details carefully. 

It is also important to consider what financial protection you already have in place. Do you have substantial savings? Do you have sickness cover provided by your employer and if so, what are the terms?

Looking at the bigger picture of all available resource can reduce the amount of critical illness cover you need and therefore the premium you would need to pay.

If you have had health problems in the past, don’t be put off talking to your financial adviser about critical illness protection. They have extensive knowledge about individual provider criteria, and they would be able to ensure your application is placed with the most appropriate insurer.

To find out about critical illness cover and how you can best protect your family, get in touch, we’d love to help. 

Date issued: 08.10.15

Please remember any views or facts expressed above are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice. None of the information should be regarded as advice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested. Any tax treatment is dependant upon individual client circumstances and may be subject to change.

Sanlam is a trading name of Sanlam Wealth Planning UK Limited (Reg. in England 3879955) and English Mutual Limited (Reg. in England 6685913). English Mutual Limited is an appointed representative of Sanlam Wealth Planning UK Limited which is authorised and regulated by the Financial Conduct Authority.

Registered Office: St. Bartholomew’s House, Lewins Mead, Bristol, BS1 2NH.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.