The words ‘mid-life crisis’ may likely have you thinking about fast cars and a new focus on having fun… but there’s a different type of mid-life crisis that could also affect your lifestyle and family.

If your life was to change in an instant due to a serious injury or illness, such as a heart attack, stroke or diagnosis of cancer, would you be prepared for the impact on you or your family, not only emotionally, but financially?

A critical illness could prevent you from working, which could impact your ability to pay for your ongoing living expenses and everyday responsibilities. There could also be significant out of pocket medical costs or rehabilitation costs.

Australia’s out of pocket medical costs are the third highest in the world.[1] Indeed a recent Whitepaper from Zurich[2] highlighted that the average lifetime cost of cancer for people aged 15-64 is $126,280. Many people incorrectly believe they may be covered by private health insurance, not realising they may be exposed to additional treatment expenses.

And while you think it may not happen to you, statistics tell us a different story. Cancer is a leading cause of death in Australia and one in two Australian men and women will be diagnosed with cancer by the age of 85.[3] More than 57,000 Australians suffer a heart attack each year, that’s one heart attack every ten minutes.[4]

What you can do about it

It’s important to protect your financial wellbeing from the unexpected. Trauma Insurance provides a lump sum payout if you are diagnosed with a specified medical condition. Trauma Insurance can be used to cover expenses associated with your illness, including out of pocket medical costs, rehabilitation costs, special transport needs or home modifications to assist your recovery.

You can also tailor the amount of cover you need depending on your ability to cover debts and lifestyle needs such as the need for a carer. Trauma Insurance premiums tend to rise as you get older, with policies often lapsing once you reach a specified age (usually between 65 and 75).

Am I doubling up on insurance?

There is often confusion about personal insurance and what is and what isn’t covered. Often people mistakenly think they are doubling up when they hold more than one personal insurance policy.

It’s important to know that different insurance covers different possibilities. Trauma Insurance should be considered as part of an overall strategy of insurance protection. Personal insurance policies include:

Life Insurance: Life Insurance generally pays a lump sum in the event of your death.

Income Protection Insurance: This type of insurance generally pays a monthly payment, for a nominated timeframe, if you are unable to work due to sickness or injury.

Total and Permanent Disability (TPD) Insurance: This insurance generally pays out a lump sum in the event of accident or illness which leaves you with a permanent disability and unable to work.

Trauma Insurance: Trauma Insurance generally provides a lump sum payment that can be used to cover expenses (such as out of pocket medical expenses, therapy, transport expenses, hiring a carer or home modifications) associated with medical traumas such as stroke, heart attack and cancer.

There are many complexities associated with personal insurances and we strongly encourage you to contact us for professional advice so you can feel confident that you have appropriate levels of protection in place for your personal situation and stage of life.

For advice about protecting your lifestyle and financial future, please contact our office on 07 3720 1299 or email admin@wealthfundamentals.com.au

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

This is general advice only and does not take into account your objectives, financial situation or needs, so you should consider whether the advice is relevant to your personal circumstances. You should also read the relevant Product Disclosure Statements (PDS) before making any financial decisions.

This publication cannot be reproduced in any form without the express written consent of the author.

[1] https://www.australianageingagenda.com.au/clinical/the-cost-of-chronic-disease-and-disability/

[2] https://www.zurich.com.au/advisers/tools-and-resources/cost-of-care.html

[3] https://www.cancer.org.au/cancer-information/what-is-cancer/facts-and-figures

[4] https://www.hri.org.au/health/learn/cardiovascular-disease/heart-attack