The news of Denmark’s midfielder Christian Eriksen collapsing on the pitch at Euro 2020 last month stunned fans around the world. Naturally, the exact details have not been revealed, but an undiagnosed heart condition for a man in his 20s is sadly not as rare as we might think.
Those events are a stark reminder that even a young athlete at the peak of fitness can be laid low by a medical emergency.
The financial effects of a medical emergency
You don’t have to be an athlete, or even do a physical job to find that your livelihood could be threatened by a medical condition. A medical crisis could strike anyone at any time, and you need to ask yourself how you would manage if you suddenly became unable to work. Your employer might be able to help for a few months, but they would be unlikely to keep paying your salary indefinitely.
The prospects are even worse if you are self-employed, with no employer safety net to rely on.
As Christian Eriksen’s collapse has showed, we may be at risk too. However, there are ways to protect ourselves and our loved ones against the financial effects if accident or illness made us unable to work. At Continuum we believe that insurance protection is a vital part of all financial planning.
What cover do you need?
The simple answer is that if you are a sole breadwinner, you would need to replace your current income to ensure your family were not to suffer a fall in their living standards. At the very least, you would need enough to pay off the mortgage, and to take care of the monthly bills.
You probably already have life assurance. A whole of life policy could provide for loved ones whatever age we reach and provide a lump sum to pay off an inheritance tax bill. But life cover alone is not enough. It is obvious that illness could strike more frequently than premature death. You need cover that will pay out if illness or accident stops you working.
There are several types of cover you should consider
Critical illness cover could help if you contracted an illness specified by the policy. Cancer and heart problems are usually covered, along with a range of other serious conditions. If you were diagnosed, you and your family could have the cash you need to replace your income with a lump sum payment.
Long-Term Income Protection cover operates a little differently. If any accident or illness left you permanently unable to work, this could provide a replacement income until your standard retirement date, (policies typically start to pay out after a deferred period – usually between four and 52 weeks.)
Short-Term Income Protection cover also provides cover for Accident, Sickness and Unemployment, but provides it in the form of a replacement monthly income for one or two years until you were fit again. It can also include redundancy cover at an extra cost.
What will it all cost?
Getting the cover you need for your health at the best price is vital.
You may not be able to do much about the level of cover you can get for your age and current health conditions, all which are fundamental to the cost of cover – but you can rely on us at Continuum to help you get the cover you need to suit your circumstances.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable Protection products, you should seek independent financial advice before embarking on any course of action.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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