Each October, Breast Cancer Awareness Month aims to raise money to prevent future generations from hearing the words “you have breast cancer”.
Breast Cancer UK research reveals that there are around 56,000 new cases of breast cancer in women every year – equivalent to more than 150 cases every day. It’s the most common type of cancer in the UK.
A cancer diagnosis – whether it’s breast cancer or another form of the illness – can be a frightening and emotional time. It may also lead to concerns about your financial security, especially if you need to take an extended period off work for treatment or recovery.
Putting a robust financial plan in place can give you peace of mind in the event you’re seriously ill – read on to find out why.
A serious illness diagnosis can lead to financial worries
Being diagnosed with a serious illness can be one of life’s most stressful events. And, even if you are fit and healthy now, the data shows that the chances of contracting a condition such as cancer are significant.
- Cancer Research UK (CRUK) report that someone in the UK is diagnosed with cancer every two minutes. 1 in 2 people will get cancer in their lifetime.
- The British Heart Foundation (BHF) says that, on average, someone in the UK is admitted to hospital due to a stroke every five minutes.
- The Multiple Sclerosis (MS) Society says that 135 people are diagnosed with MS every week in the UK.
- The BHF say that, on average, 260 hospital admissions in the UK every day are due to a heart attack.
If this were to happen to you or a loved one, would you be able to cope financially? Would you and your family be able to maintain your regular commitments if you were seriously ill? And what would happen to your income if you were off work for an extended period?
It sounds like a strange thing to say but, in some ways, being diagnosed with a serious illness can lead to more significant financial problems than passing away. That’s because you may have to take an extended period off work to focus on your treatment and recovery while still having to maintain your regular commitments.
Moreover, your outgoings may also rise during this period. You may have to pay for:
- Additional childcare
- Travelling to and from a hospital for your appointments
- Adaptations to your home.
Advances in early screening and treatment have seen survival rates from breast cancer increase. Breast Cancer UK reports that:
- 8% of women diagnosed with breast cancer survive at least one year.
- 85% of women diagnosed with breast cancer survive at least five years.
- 75.9% of women diagnosed with breast cancer are predicted to survive for 10 or more years.
Consequently, high survival rates mean that you will need to make financial provision for yourself and your family both during and after your treatment.
Worrying about your finances is also likely to be the last thing you want to focus on at this emotional time. So, ensuring you take the right steps can enable you and your loved ones to focus on your recovery, not your bills.
2 practical ways to protect your wealth from a cancer or other serious illness diagnosis
1. Build up an emergency fund
Having an emergency fund in place means you have cash readily available if you need to cover short-term expenses. It means you don’t have to resort to expensive borrowing to make ends meet if the unexpected happens.
We normally suggest holding three to six months of expenses in an easy access account. This is a useful safety net and means you know you will be able to pay your mortgage/rent and bills if you had to take an extended period off work.
2. Put the appropriate protection in place
If you’re employed, you may assume that your employee benefits will provide the protection you need if you have to take time off.
However, many sick pay arrangements will only pay full pay for a defined period. You may then receive half pay, or even Statutory Sick Pay (SSP) which, in 2024/25, is just £116.75 a week, payable for a maximum of 28 weeks.
Putting the right protection in place can reassure you that you’ll benefit from financial support if you’re diagnosed with a serious condition. It means you know you will receive either a regular income, or a tax-free lump sum, if you’re diagnosed with a serious condition and unable to work.
Income protection is designed to ensure you continue to receive a regular income if you’re unable to work due to ill health, injury, or because of an accident. You will benefit from a tax-free payment, usually up to around 60% of your earnings.
Many insurers also offer valuable “return to work” benefits, helping you to recover more quickly.
Meanwhile, critical illness cover will provide a tax-free lump sum if you’re diagnosed with an illness covered by your plan. The conditions range from insurer to insurer, but will typically include:
- Serious types of cancer
- Heart attack
- Stroke
- Multiple sclerosis
- Parkinson’s disease
- Alzheimer’s or dementia
- Total and permanent disability.
Both types of protection provide valuable financial support just when you need it the most. This injection of capital can help you to maintain your lifestyle and focus on your recovery, not on your finances.
Get in touch
If you’d like to learn more about how to ensure your financial plan is not thrown off course by a serious illness, we can help.
Please contact us by email at info@lloydosullivan.co.uk or call 020 8941 9779 to see how we can assist you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Note that life insurance, income protection, and critical illness plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
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