Financial protection in the event of ill health or incapacity of a family member will have an emotional impact and a financial impact, particularly if it applies to the ‘bread winner’.
When a family member is ill, it can impact the financial position and the lives of other family members who may even need to become carers at the expense of other activities.
The loss of regular income for both the patient and potentially the ‘carer’ is likely to stretch the household financial position to breaking point as debts accrue which may well include a mortgage.
Some illness can be best described as ‘dying a little bit’ and has prompted some to suggest that:
‘’My family would be better off if I had died’’
In the 1960’s, Dr Christiaan Barnard, a South African Cardiac Surgeon, reported that many of his patients said this having suffered a life-threatening cardiac arrest which scuppered their chances of leading a normal active life.
They had sufficient life insurance to ensure the family would be adequately provided for but, having survived, and likely to experience a long-term recovery period, the family’s financial position was going to be dire.
This was the origin of Critical Illness Policies which are designed to pay out upon diagnosis of a life threatening and incapacitating conditions.
Protecting your income
Should you be off sick, the bills keep arriving and earned income has ground to a halt, but you need not worry if income protection comes to the rescue and allow you to simply concentrate on a full recovery.
Benefits are payable monthly over a short term or a long term and be added to your overall protection solution, ensuring that the impact of all eventualities can be minimised.
