Beware: The financial impact of cancer could cost you £570 a month

[Photo: Getty]

Most of us will have an emergency ‘rainy day’ fund. But are we really prepared for a worse case scenario in life such as being diagnosed with a terminal disease like cancer?

Most of us will know somebody at some point in our life who has been diagnosed with cancer. But the financial impact of cancer is a growing issue, according to a Macmillan Cancer Support report.

Macmillan Cancer Support research has shown that four out of five people with cancer are, on average, £570 a month worse off because of their diagnosis.

A cancer diagnosis is typically sudden and unexpected, and people often don’t realise the extent to which their finances are likely to be affected.

Stephen Crosbie, protection director at Aegon, says Macmillan’s statistics are extremely concerning but are in line with Aegon’s own research findings over the years.

“People across the UK are leaving themselves financially exposed to the toll serious illness can take on their finances,” says Crosbie.

Put protection policies in place

Having to deal with financial pressures while facing the devastating effects of a cancer diagnosis and treatment is tragic. So why not have protection policies in place?

“Savings are one way to support people through their cancer treatment and recovery, but protection policies are also there for that very purpose,” Crosbie says.

“Critical illness cover can provide a lump sum that can be used to replace an individual’s income when unexpected events occur such as being struck by serious illness,” adds Crosbie.

Protection policies can provide an important safety net in helping to meet a family’s monthly expenses, ranging from mortgage payments to supermarket shopping.

Crosbie adds: “However, the reality is that far too many people in the UK are putting themselves and their families at unnecessary risk by not taking steps to protect themselves.”

He explains that many people cite cost as the reason for not buying protection, but points out that £7.01 a month is a relatively low price to pay for peace of mind.

“Across the UK people insure their homes, their pets and their mobiles but overlook the vital component that funds all of their day-to-day spending – them. Instead, people expect to rely on savings but the sums often don’t add up with relatively few people having substantial cash savings to fall back on,” says Crosbie.

Bereavement gender divide

Royal London’s Losing a Partner research shows there is a clear bereavement gender divide, with women suffering more financially and practically in the aftermath of losing a spouse or long-term partner.

For example, bereaved women reported lower household and disposable income compared to men, and were twice as likely to be forced to move home.

One of the more extreme financial impacts following the loss of a partner is downsizing or moving house. Royal London Research showed while just one in 10 men downsize or move house, two in five women are forced to move home following a bereavement.

When it comes to coping with bereavement a Royal London spokesperson says: “Coping with the loss of a loved one is not just about having to deal with the emotional impact but also the financial and practical consequences.”

Written by London-based journalist Tanzeel Akhtar. Her work has been published in the Wall Street Journal, FT Alphaville, CNBC, Citywire, Euromoney, Interactive Investor.

Disclaimer: The content on this page does not constitute financial advice and is provided for general information purposes only. Nothing on this page should be regarded as an offer to conduct investment business or to buy/sell any investment.