Sharon Hamman, Senior Legal Adviser at Momentum outlines the necessity of critical illness cover in a world where health risks and financial security go hand-in-hand.

Life is full of milestones. Whether it’s starting a career, buying a home, raising children, or planning for retirement, each stage comes with its own priorities, responsibilities, and financial decisions. While these moments define our journey, they also remind us how fleeting and unpredictable life can be. A critical illness like cancer or heart disease can happen at any point, destroying the financial foundation you’ve worked so hard to put in place. Hamman says: “Everything is fine until it’s not. We can’t anticipate the when, why or where, but we can at least plan for it.”

Momentum Life Insurance 2024 claim statistics revealed that nearly 70% of critical illness claims paid out to women in their 30s, 40s, and 50s. These are the wonder(ful) years when careers are advancing, families are being built and becoming more settled and content, while financial responsibilities are often at their peak. Nobody is immune to the impact of a critical illness and the financial consequences thereof affects everyone. It can be devastating, not just to the person contracting the illness but also to the immediate family, emotionally and financially.

If it’s true that success favours the focused, the right time to plan for a critical illness is not one day, but today, says Hamman.

In financial planning, timing is everything

Financial planning isn’t just about “one day”, it’s also about “what if”. What if today is the day you are diagnosed with a major illness, you experience a major health episode that impacts the here, the now and the future? Financial planning is about more than matching protection and investment choices to your current life stage – it should always stay focused on tomorrow, on the ‘what ifs’, the worst-case scenarios. Planning early for protection (against the financial consequences of suffering a critical illness) is crucial because without it, the financial shock of a health crisis can undo years of financial progress in a very short period of time.

Planning at the right time helps you safeguard your milestones:

· In your 30s: protecting your young family and new financial commitments

· In your 40s: shielding growing assets, children’s education, and career earnings

· In your 50s: preserving retirement savings and maintaining lifestyle security.

Critical illness cover is a financial lifeline

Although critical illness cover isn’t a replacement for health insurance, it complements health insurance by paying out a lump sum when meeting the claims criteria of a defined critical illness such as cancer, a stroke, a heart attack, and many more. It is more than just cover, it is a continuity plan that helps you to stay focused on your life goals, even when health challenges arise.

The cover ensures your financial goals stay intact, no matter what happens, by empowering you to:

· Replace lost income when you can’t work.

· Cover rising healthcare or specialised treatment costs.

· Keep school fees, household expenses, and debt repayments on track.

· Safeguard your savings and retirement funds for the future.

To truly value critical illness cover, one should consider what happens if you don’t have it. How often do we see and contribute to ‘Back-a-buddy’ or ‘Go-fund-me’ drives for friends, family members or even strangers, where funding for treatment has run out or additional funding is required for specialised or unconventional treatments to save a life, provide for loved ones, or keep life steady while facing a brutal battle. With proactive, proper planning this risk can be alleviated.

Integrating protection into your financial plan

During the wonder years, wealth creation is often the main goal, but it shouldn’t be at the expense of protecting that wealth. Including critical illness cover in your financial plan, you’ll secure an important part of your financial future.

Ultimately, where do you start with this process? The first step is to consider your health and family history to determine your health risks. The more prevalent critical illnesses are in your family, the more urgent your action should be. The next step is to have a heart-to-heart with your accredited financial adviser to assess your risk and make the necessary adjustments to your financial plan to incorporate critical illness cover. The type of cover and the breadth of cover will be considered and matched to your risk profile and affordability. Planning ahead will not stop a critical illness but it shields you from the financial devastation that can follow it. A robust safety net allows you to focus on healing, rather than worry about how to survive financially.

Critical illness cover is more than a policy. It’s a safeguard for the life you have built, the family you support, and the future you’re working towards

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