Receiving a life-altering medical diagnosis is an immensely challenging journey. Alongside the physical and emotional worry, there's often an unspoken but significant concern: the financial implications accompanying it. The uncertainty of medical coverage and the strain on your financial security can compound an already overwhelming situation. Medical procedures and treatments come at a cost, and the impact on your financial well-being is not to be underestimated. To provide insights into managing these financial complexities, we spoke to Sarah Crone, a Financial Advisor who has faced these challenges as a breast cancer survivor. Here, she offers valuable insights and guidance for navigating the financial aspects of a critical illness medical diagnosis.
Understanding the financial challenges
Critical illness comes with an array of financial costs. Understanding these costs is essential for better planning and preparedness. Some of the primary financial challenges individuals typically encounter include:
- Medical expenses: The cost of medical treatment can be substantial. These expenses can range from surgeries, chemotherapy, radiation therapy, and medications and quickly add up. Medical aid, insurance, or out-of-pocket expenses are important considerations.
- Time away from work: Treatment may require taking time off. This can result in reduced income or job loss, making having a financial safety net essential.
- Indirect costs: Don't forget indirect costs like transportation to and from medical appointments - especially if treatment centers are far from home and childcare or home care assistance. These expenses can accumulate without you even realising it.
- Loss of income: Time away from work may result in a reduction of your income.
- Family and caregiver support: The financial impact extends to family and caregivers who may need to take time off work to provide support and care.
Financial strategies during a critical illness journey
A sound financial strategy is essential for peace of mind and financial security when faced with breast cancer or critical illness diagnosis. This involves a careful evaluation of your medical aid and insurance options.
- Medical aid: Review your medical aid plan to understand the extent of its coverage and any exclusions. Ensure that your chosen plan aligns with your specific healthcare needs. Many medical aid plans will allow you to upgrade your plan during diagnosis.
- Gap cover: Gap cover is a vital resource that can bridge the financial gap between what your medical aid covers, and the actual costs incurred during treatment. This additional layer of protection can be instrumental in safeguarding your financial well-being.
- Income protection: To address the potential loss of income during your treatment, consider income protection insurance. It can offer financial support when you cannot work due to treatment or recovery.
- Dread disease cover: This specialised insurance provides a lump sum payment upon diagnosing specific critical illnesses, including cancer. It can be a financial safety net to help cover various expenses during treatment.
- Emergency fund: Beyond direct medical expenses, you may encounter copayments, expenditures for prescription medications, or specialised treatments. An emergency fund is a valuable resource to manage these unexpected costs without causing financial strain.
- Lifestyle changes and unexpected expenses: Recognise that costs may extend beyond the medical realm. These include lifestyle adjustments, home adaptations to accommodate your needs, or increased childcare expenses. These costs can strain your budget, so planning for them is important.
Navigating your finances
After your diagnosis, one of the first steps should be to initiate discussions with your financial advisor. They are pivotal in shedding light on the financial aspects and steering you through this complex journey. Their expertise can clarify financial matters and help you make informed decisions about your health and care. With the weight of a diagnosis on your shoulders, many considerations can feel overwhelming. Knowing that your financial advisor is there to assist in navigating these financial decisions provides relief. It empowers you to focus on the crucial choices about your health and treatment options.
They can guide you through the process and address critical financial considerations such as:
- Budget adjustments: Assessing your current financial situation and creating a budget that reflects your new reality.
- Debt management: Your advisor can help you manage existing debts and explore options for financial relief.
- Financial goals: Reevaluate your short-term and long-term financial goals and make necessary adjustments.
- Insurance review: Review your existing insurance policies and ensure they provide adequate coverage for your needs. Evaluate the extent of coverage and whether it addresses your specific medical conditions. Understand the cost structure of your insurance, including premiums, deductibles, and copayments.
Your financial advisor can provide invaluable insights and strategies tailored to your circumstances.
Empowering yourself
Navigating the financial complexities of a critical illness diagnosis requires a proactive approach.
- Create an emergency fund: A financial buffer can be a lifesaver during treatment. Aim to have at least three to six months of living expenses saved.
- Regularly review your financial situation: Review your budget, insurance, and investment strategies. Adjust align with your financial goals.
- Stay informed: Knowledge is your most potent tool. Educate yourself about your treatment options, insurance coverage, and financial resources available.
- Seek emotional support: Life-altering medical diagnoses can affect your mental health. Lean on the strength and support from friends and family, or a mental health professional to help you through this challenging time. You may also find comfort and understanding in joining support groups, where individuals share a profound knowledge of your experience. Take the initiative to research groups in your vicinity or consult your healthcare professionals for recommendations. Your emotional well-being is an essential aspect of your journey to recovery.
- Don't be afraid to ask: If you're struggling with the financial aspects of your diagnosis, ask for help. Friends, family, or support organisations might offer guidance and support.
While a critical illness diagnosis like breast cancer can be financially challenging, remember you are not alone. Seek professional guidance and emotional support to help you navigate the complexities. Your financial well-being is a critical part of your overall health, and by taking the right steps, you can ensure a financial future beyond breast cancer.
