The Financial Impact of an Early Cancer Diagnosis: An Anecdote
It is noticeable that the incidence of cancer has increased over the last few years. Alarmingly, the stats show that 1 in 3 Singaporean get diagnosed with cancer at some point in their lives.
My friend Jane (not her real name) was recently diagnosed with stage I breast cancer at the age of 41. Her oncologist recommended excision of cancerous lesion followed by radiotherapy or hormone therapy. Jane did proceed with surgery to excise the lesion in her breast, however, was less enthusiastic about pursuing radiotherapy or hormone therapy. She began to research extensively, reading about various natural therapies and holistic approaches to cancer care. Her journey led her to commit to a treatment plan that includes:
- Blood tests ordered by naturopathic doctor ($3,500)
- Wellness retreat with her husband ($12,000)
- Herbs and supplements ($7,000/ month)
- Change in dietary habits (Increased her grocery expense by 50%)
Jane was not able to claim for above items from her health insurance policy. Instead, she received a lump sum payout from her early critical illness policy. She says that the payout has given her the freedom to explore alternative treatments without imposing a financial burden.
The Rising Tide of Critical Illnesses
According to the World Health Organization, non-communicable diseases, primarily cardiovascular diseases, cancers, and chronic respiratory diseases, account for 71% of all deaths globally.
An increased awareness has compelled people to be more diligent with their health, prompting them to go for annual checks. This increased conscientiousness has enabled individuals to catch critical illnesses at an early stage. While early detection is always a good thing, subsequent lifestyle choices may be costly and fall through the cracks of traditional insurance policies such as:
- Health insurance – does not cover alternative treatments, experimental treatment, long-term lifestyle choices
- Critical Illness Insurance policies – Traditionally, such policies only pay the sum assured on diagnosis of advanced stage critical illnesses
- Disability Income policies – In the case of my friend Jane, she still was able to return to work in similar capacity since she did not pursue conventional cancer treatment
Early Critical Illness Insurance: Giving Yourself the Freedom to Choose
Early Critical Illness insurance provides a lumpsum payout when the insured person is diagnosed with early stages of critical illness. This product was only introduced to the market in the late 2000’s. Premiums were steep compared to the traditional critical illness insurance plans. Predictably, this led to a debate about whether adding such a policy to one’s portfolio would be necessary to begin with.
The whole point of this article is not to endorse alternative treatment but to highlight how being endowed financially empowers one to have options. In the face of a critical illness diagnosis, we are not just confronted with medical bills and a potential loss of income, we are likewise presented with a multitude of treatment choices and lifestyle change that are not claimable from health insurance.
When it comes to managing health risks, it is prudent to consider just a modest cover for early critical illness. Even at a modest level, you can secure a measure of financial security and confidence in your health journey.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Briony Guntzenbach
I have been a financial advisor since 2007, starting off as a tied agent before joining Financial Alliance. I did so to gain access to a platform where I can offer unbiased advice. From managing business risks to overseeing a client’s retirement portfolio, I have undertaken the effortful task of becoming adept at personal finance and risk management for both businesses and individuals.
The best thing about what I do is people. As an extrovert, I value the conversations and connections I have made with my clients. This also gives me a sense of achievement when I help my clients to construct a financial portfolio to protect and grow their Wealth.
In my free time, I like to create visual content to entertain my loved ones.
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