The Australian has published an article today reporting the Stroke Foundation’s assessment of Australia’s response to chronic disease. It doesn’t make for pleasant reading suggesting that 4 in 10 stroke victims miss out on the best quality of care on the onset of a stroke.
A major health event such as a stroke or heart attack not only has major implications for your future personal and family lifestyle but also in turn has ramifications for the financial outcomes achieved by households.
Major health events can cause a loss or reduction in future income, major expenses for treatment and rehabilitation along with a natural reassessment of life’s priorities.
There are a number of ways we all can endeavor to limit the impact of these types of event on our lives:
- Eat healthily
- Keep fit
- Invest in a good quality private health insurance policy
- Set aside savings for a rainy day
Unfortunately incidents of major health issues do not only target those of us who eat unhealthily are and are unfit. Our private health insurance and or level of personal savings may not be able to adequately provide for the required treatment, rehabilitation and life reassessment required after the onset of such an event.
This is where life insurances can play a critical part in ensuring that the outcome after a major health event is as good as can be hoped for.
An essential element of this cover is income protection. Many of us have some cover through an employer sanctioned superannuation scheme but often the extent and scope of the cover is not sufficient and should be regularly assessed.
Unfortunately some die or are totally and permanently disabled after the incidence of a major health issue. Death benefit and TPD (Total & Permanent Disability) cover are important to protect a family’s financial situation in such an event.
However, the most directly related level of coverage is Critical Illness or Trauma coverage. This insurance pays out a lump sum to the holder of the policy on the onset of a list of pre defined major health events including strokes and heart attacks.
Trauma insurance is often avoided because it comes at a significant cost. The challenge as with all insurance is to weigh up whether the peace of mind and security this cover provides outweighs the financial drag these costs have on future financial outcomes. There is no “RIGHT” answer to this question but it is important that the discussion is had and all possible consequences weighed up rather than just pushing the discussion into the too hard basket.
The most important aspect is that a plan is put in place for the possibility of such an event occurring. This is where a good, unbiased adviser who is focused on you and not the sale is important inhelping balance the competing needs.
A Clear Direction has for many years have out sourced the provision of insurance coverage to another firm. However as I have grown older (and hopefully wiser) and started to build my own family I have identified the need to bring the provision of life insurance advice in house so as to provide the best wholistic advice for clients.
So if you are looking to have all bases covered please do not hesitate to be in contact.
Regards,
Scott
