Critical Illness Insurance – Your questions answered

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What Is A Critical Illness.

A Critical illness is a major illness such as Cancer, Heart disease, Stroke, Musculoskeletal, Neurological Disorders, etc.


Advancements In Medical Science

In the past a lot of critical illnesses would have resulted in you becoming totally and permanently disabled, however due to advancements in medical science there is a higher chance that you will be able to recover your pre-illness lifestyle. Unfortunately the cost of treating a critical illness is expensive and as it does not result in you becoming totally and permanently disabled the importance for Critical Illness has increased.


Critical Illness Facts

According to the Cancer Council Australia (2011), approximately 114,000 new cases of cancer were diagnosed in Australia, in 2010.

According to the Cancer Council Australia (2011), more than 60% of cancer patients will survive more than five years after diagnosis.

According to the Cancer Council Australia (2011), one in three females and one in two males will be diagnosed with cancer before the age of 85.

According to the Stroke Foundation (2011), two out of every three people that suffer a first time stroke will be alive one year later.

According to the National Stroke Foundation (2012), about 88% of stroke survivors live at home. Most of them live with a disability

According to Bupa Australia (2011), strokes cost Australians approximately $2.14 billion every year.


Common Misconceptions

Many Australians do not establish Critical Illness insurance because they think that their private health or Total and Permanent Disability (TPD) insurance will cover the critical illness, or they do not require the cover as their partner produces the income. Private Health insurance does help with medical treatment and hospital expenses however it will not assist in the cost for some specialist therapies, or ongoing treatment needs. TPD insurance does cover some of the same illnesses as Critical Illness insurance, however due to advancements in medical science less critical illnesses are resulting in you becoming TPD, therefore the importance of Critical Illness insurance has increased to cover your medical expenses and other unexpected costs. To establish Critical Illness insurance you are not required to be working and according to The Cost of Cancer in NSW (2007) Child care and home help provided by a ‘stay-at-home’ spouse could be worth more than $75,000 per year.


What Is Critical Illness Insurance?

Critical Illness cover is a lump sum benefit that is paid to you in the event of a critical illness. Most Insurance companies cover 40-50 listed critical illness events. The lump sum benefit can be used to cover your medical expenses, treatment costs, rehabilitation, lifestyle modifications and/or debt repayments. This will allow you to remove your financial stress and concentrate on your recovery so you can recover your pre-illness lifestyle.


How Can You Obtain Critical Illness Protection?

You can obtain the relevant protection by calling Southern Cross Wealth Management on 0430 506 608. The first appointment will be at our expense and it can be held in our Fremantle or Balcatta office, at your house or office, over the phone, or via Skype.



Cancer Council Australia (2011) Facts and Figures viewed 1 May 2012

Cancer Council Australia (2011) Facts and Figures viewed 22 May 2012

Stroke Foundation (2011) 10 Things You Should Know About Stroke viewed 22 May 2012

National Stroke Foundation (2012) Facts, Figures and Statistics viewed 1 May 2012

Bupa Australia (2011) Key facts about stroke

stroke#Effects viewed 1 May 2012

Cost of Cancer in NSW (April 2007) A report by Access Economics Pty Limited for The Cancer Council NSW


Important Information

This information is of a general nature only and does not take into account a potential policy owner’s objectives, financial situation or needs. Before making a decision based on this content you should assess the appropriateness of this information having regard to your objectives, financial situation or needs or contact Southern Cross Wealth Management on 0430 506 608 to arrange an appointment.