If you are diagnosed with a critical illness such as cancer, money is the last thing on your mind. The reality, however, is that financial implications stretch far beyond the cost of the treatment you will need. Not having the right cover in place for a host of costs your health insurance will not pay for, could have a devasting impact on your finances.

There are three (3) important areas of cover that people need to consider, namely

* Income Protection 

* Serious Illness Cover

* Disability Cover

Many of us often think that having Health Insurance is sufficient. But your medical bills are only part of the picture.

Protecting your income

Being diagnosed with cancer and requiring surgery, radiotherapy or chemotherapy may mean that you're temporarily disabled to such an extent that you are not able to continue working. This could mean you can no longer generate an income and if you're a parent or a breadwinner, this can be financially crippling for your family. An income protection plan will cover you for a loss of income when you are temporarily disabled due to a serious illness such as cancer.

When considering an income protection plan, you must take into consideration the option of the different waiting periods, as this will have an impact on affordability. The shorter the waiting period, the more expensive the benefit, but then your claim will be paid earlier during the period of disability.

This is by far the most important cover besides belonging to a health insurance plan, especially if you are self-employed! Often the mistake is made where permanent disability cover is taken out before income protection. Disability cover will only become effective if you are deemed to be totally and permanently disabled. In the interim, while the condition has not yet reached the point of permanency, what are you going to live on? Your ability to earn an income is your greatest asset, and it is crucial that you protect this!

Serious Illness Cover

While cancer treatment can drain finances, the associated costs of your treatment can have an equally dire effect on your bank balance. This is where serious illness cover can offer critical assistance. It ensures that you're able to claim financial assistance should you be diagnosed with a severe illness. It will pay out a lump sum and can be used for the following:

• Travel to and from the medical facility at which you are receiving treatment
• Accommodation for relatives while you are being treated
• Your basic expenses, such as a mortgage or car loan
• The costs of a carer for an extended convalescence period
• Taking care of your children and organising transport or homecare duties while you are ill

You can also use your serious illness cover to pay for treating your health insurance may not cover, such as reconstructive surgery in the event of breast cancer or expensive biologics used to treat types of cancer. Some of these newer medicines, which can prolong your life but are not always covered by your health insurance can be very expensive.

Permanent Disability Cover

If you become ill with cancer you may be permanently unable to continue working. Permanent disability cover is aimed at offering you financial protection should this happen. Disability benefits will be paid as a lump sum if your impairment causes total and permanent disability. A needs analysis taking into account your income and existing disability cover will determine how much additional disability cover you would need in case you become totally and permanently disabled.

Cover for income protection, serious illness cover and disability cover can either be taken out as stand-alone products, or they can form part of a combined package. 

Affordability of additional financial insurance is obviously a key consideration, along with an analysis of your needs as well as your age. For example, for a 25-year-old with no dependents, income protection would be the most important type of cover. If you know you have a family history of cancer, however, you may want to also include some level of serious illness cover. If you can afford it, you can then consider permanent disability cover.

It is crucial, however, to obtain the services of a financial broker before making a decision. 

There are a plethora of personal cover products to choose from, and no two companies have exactly the same products or the same claim payment conditions. You need to understand what each product covers, the level of benefits, any exclusions, and the meaning of the policy wording. Everyone’s circumstances are unique, so the most appropriate product will be very different from one person to the next to ensure there is a good balance between what they need and what they can afford. 

If you have to prioritise, make sure that you at least have the most basic cover in place - you can always increase it later, through an alteration, or you can purchase an extra product. But don't do anything! No-one likes to think they might one day be diagnosed with cancer. Yet one in six people has a lifetime risk of developing cancer. It strikes without warning and without regard for age or income level.

Can you afford to leave your future to chance? Please complete the attached enquiry form or contact Alasdair directly on 01-8101912 or via info@agsfinancial.ie and he will happily create a protection plan for you or review your existing protection roadmap.