Living with an illness – the financial planning steps you can take…
Start by looking at your income and expenditure
The first port of call is to look at your income and expenditure. Are your current assets and income enough to meet your goals? One of these variables could change drastically following a medical diagnosis; understandably when you become unwell, you may want to reduce your working hours or stop working completely. What changes can you make?
One of the forecasting tools we use at 1825 to help us establish this is ‘cash-flow planning’; by adding information about you and your circumstances, we can look at what options are available, for example: whether there are other assets you can draw from, such as your pension, or whether you need to reduce your ongoing expenditure. There are many options we can consider; if this is something you’d like us to look at, we are happy to help!
Take advantage of the benefits offered by your employer or your partners employer
The most common benefits offered by employers are:
- Private medical insurance (‘PMI’)
- Long term sickness pay (income protection)
- Advice and counselling (also known as an employee assistance scheme)
- Life cover (also known as death in service benefits)
If you have existing private medical insurance via your employer and have been referred for investigation or diagnosed with an illness, there is no harm in checking whether your condition is covered before submitting a claim; referrals for treatment are usually quick and stress free via private healthcare.
If you need to take longer periods away from work, your employer may pay you long term sick pay. If so, this is likely to be in the form of an income protection policy. This policy will pay you a portion of your normal salary (usually between 65% and 75%) following an initial period of between 4 and 26 weeks (depending on the plan).
Your employer may also have an employee assistance scheme; this will usually offer you free, confidential support in the form of advice and counselling.
If there is an area of financial planning advice you’d like more information on, our experts are available to talk through the options most suitable for your specific needs.
Get in touch today to book your free initial consultation today.