01
May
2017

The cost of serious illness

Do you understand the cost of serious illness?

Unfortunately serious health concerns are an unpleasant reality that we all have to deal with in life. The financial implications of critical illness are understandably not the most important consideration at these times, but can be crippling in their own right.

Apart from the loss of income resulting from not being able to work due to serious illness, the medical costs, even with health insurance, can be very high.

While many people walk away from a stroke in relatively good health, The North East Melbourne Stoke Incidence Study (NEMSIS) indicated that 42.1% of stroke sufferers had some form of disability as a result.  12% of Stroke survivors are required to live in cared accommodation and a further 25% required help with self-care.  85% required ongoing physiotherapy and/or occupational therapy and 35% require speech therapy.

All this treatment obviously costs a lot of money, even with medical insurance.  NEMSIS calculated that the average “out of pocket” costs for a stroke are $18,956 in the first year and $44,428 over a lifetime. Although many stroke sufferers are fortunate enough to incur very few costs, about third of stroke survivors incur lifetime costs of over $100,000.

According to economic powerhouse, Deloittes, the medical costs of living with Parkinsons is approximately $144,000 over the course of the disease. On average, it costs about $1,000 per month for someone with Multiple Sclerosis and Muscular Dystrophy medical costs are estimated at $144,000 per year.

These sorts of medical costs are enough to break most people, and it does. In 2014, 62% of all personal bankruptcies in Australia were due to medical costs. 78% of these people had health insurance. That is a scary thought!

It is possible to insure yourself against this financial risk. Trauma Insurance is a type of insurance that is specifically designed to protect you against the financial impact of specific major illness or injuries by providing a lump sum payment.

 

Suffering a trauma not only impacts your lifestyle in terms of your health, but also your finances.  Trauma insurance can ensure that you will be able to maintain your livelihood or pay for medical expenses no matter what the future has in store.

Author; Alex McKenzie Categories: Future Financial Services Blog

About the Author

Alex McKenzie

Alex McKenzie

Owner at Future Financial Services

Past:

  • Paraplanner at Zammit Partners Investments
  • Unit Trust Administrator at Colonial First State

Education

  • University of Western Sydney
  • Penrith High

About

As a Financial Planner I help people to achieve what they would like in life. This involves helping you to identify the things in life they would like , developing plans to help achieve them and strategies to protect what you already have. We do this by providing Financial Advice to guide you through your life stages.

The financial planning process involves determining a clients current situation and financial objectives and tailoring strategies to assist in best achieving those objectives.

I am an expert in superannuation, investments and insurance, these are tools we use to help you achieve your goals.

I aim to use my knowledge of superannuation, taxation and Centrelink to efficiently use your assets and income to achieve your financial goals.

Retirement and pre-retirement planning, wealth creation, asset protection, insurance planning and estate planning are all areas of advice that I provide.

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