Critical Illness

That’s probably what most of the 1.7 million people currently off work for six months or longer thought.
	But it could happen to you. According to Department of Social Security statistics you are sixteen times more likely to be unable to work for more than six months than die before the age of 65.
Every year, around 150,000 people suffer their first heart attack They live - but is life the same? No Thanks to advances in medical science, more and more people are surviving a serious illness. For example, half the men aged between 35-54 suffering their first heart attack will go on to live for thirteen years or longer.	What if? Your income stopped. Who do you know that would pay your mortgage, loans, household bills, running costs for your car - they all add up. At present you enjoy good health and the salary cheques keep coming in. A false sense of security?
They may have Life Assurance, but that only pays out on death. Where will the money come from whilst you are still alive, but unable to continue the same job, or unable to work at all. Every year, around 250,000 are diagnosed with cancer.	Even cancer is no longer the killer it was, with 40% of people diagnosed with cancer living for five years or more. Five years may not sound a lot, but consider five years without an income - how would you and your family survive?

The State will provide? In the past, people have relied on the State to provide a replacement income. But the welfare bill has spiraled. Even after taking inflation into account, the total cost of benefits has tripled in the last fifteen years. Almost 7% of the working population is currently claiming sickness benefits from the State. No surprise then, that a major overhaul of the state benefits system was undertaken in an attempt to make savings of billions of pounds a year. Gone is tax free Invalidity Benefit, replaced by Incapacity Benefit which is taxed after 28 weeks.	A new ability test was introduced to assess claimants’ entitlement to state benefits. The objective of the review is that less money will be paid out in benefits and fewer people will be eligible to claim. The fact is that the Government do not have the money for unlimited welfare provision. The reality is that any benefits you may receive from the state will help you survive, rather than continue your present lifestyle.
My Employer will provide ?	Perhaps, but for how long? Many employers only offer full salary payments for just six weeks and some companies do not make sick pay arrangements beyond the statutory requirements. Even if you’re fortunate enough to work for a company with a longer term scheme providing cover say for six months, what happens after the salary cheques stop arriving? If you’re self-employed, then you are even more exposed.
What can I do to protect my income ?	Many Companies will provide you with a lump sum on diagnosis of a serious illness or a regular replacement income whilst you are unable to work.
Life Assurance	Critical Illness
Income Protection	Accident cover

Take Independent Financial Advice to ensure that your plan provides what you expect