Hot on the heels of Movember, Decembeard is Bowel Cancer Australia’s awareness campaign, and this month they are urging Australians to ‘join the bowel movement’.
While many Australians don’t think it will happen to them, sadly, bowel cancer is one of the most common diseases in Australia.
If you know someone who has had to face the many burdens related to dealing with bowel cancer, you may be aware of the significant financial costs, which can be over $200,000 (Access Economics/Cancer Council NSW). Rather than worrying about bills piling up, bowel cancer sufferers should be able to focus on their recovery.
While everyone’s financial situation is different, these tips can guide you through the different types of cover available, should the unexpected occur.
1. Cover medical costs during the recovery period through living insurance.
During the recovery period, it’s essential that finances are covered. When cancer is diagnosed, living insurance (also known as trauma insurance) can provide a lump sum payment. This payment can be used to pay for medical and accommodation costs. It can also be used to reduce and even eliminate debt, such as a home loan; which you may no longer be able to repay if you cannot work to the same capacity as before.
2. If you become disabled and can no longer work, total and permanent disability (TPD) insurance applies.
In the most serious circumstances, if bowel cancer causes you to become disabled to the extent you will never work again, TPD insurance allows for a lump sum payment. Many Australians have this type of cover through their super, however they often don’t have enough.
There are two main types of TPD insurance – ‘own occupation’ and ‘any occupation’. Own occupation TPD insurance proceeds are paid if you are permanently unable to work in your current job. Any occupation TPD insurance proceeds are paid if you are permanently unable to work in a job that you would be suited to, with your education, training and experience.
Your financial adviser can help you with determining what type of TPD policy is most suitable for you.
3. Through income protection (IP) insurance you can receive up to 80% of your income in monthly payments so you can continue to pay bills.
We all know that when you are off work and your salary stops, the bills don’t! At the same time, you may not have enough sick leave to ensure that your household receives income for the entire time you are off work.
Income Protection (IP) payments replace part of the income you’d usually earn, if you become disabled and cannot work. Sometimes IP is used together with living or trauma insurance to cover the full amount of income lost.
4. Look out for insurance policies that provide well for homemakers.
If you are a homemaker, you can obtain IP insurance, which can provide income to pay for someone to perform normal household duties. If it’s not practical or financially viable for your partner to take time off work to run the household, obtaining IP insurance for homemakers might be an appropriate solution for you.
There is also a TPD insurance policy available for homemakers where proceeds are paid if you are permanently unable to perform normal household duties.
5. Life insurance helps your family pay off debts and maintain their standard of living, if you pass away.
Life insurance provides a lump sum payment if the unthinkable happens and you become terminally ill, or pass away. If you have less than 12 months to live, an advanced payment can be made for terminal illness.
The proceeds can be used to pay off debts as well as cover day-to-day costs, to allow your family to maintain their standard of living, including continuing to live in your current home.
Next steps
To find out what types of cover are best for you, first you will have to evaluate your circumstances. Often it is difficult to determine how much cover is required and this is where your adviser can step in and help.
by Rachel Leong, Product Technical Manager, Life Insurance, BT
Images courtesy of Decembeard Australia (an initiative of Bowel Cancer Australia) Decembeard.org.au