To ask how to prepare for risk of future illness/accidents?

[Acapulco12]

Just posting for some advice on how to prepare for unexpected life events e.g. serious illness or accidents. (This is related to advice I saw on a thread about the King’s cancer diagnosis, where a poster suggested taking out life and critical illness insurance, to prepare for illness and accidents etc.)

For context, I’m early thirties, work full-time and don’t have kids yet. I am lucky to have a very good sickness pay policy at my workplace - 5 months’ full sickness pay followed by 5 months’ half-pay.

Obviously I don’t know if I’m going to spend my whole career working for my current employers, and my next workplace may have less generous benefits.

Is there anything I can do to prepare and protect myself money-wise if I get a serious illness or have an accident? I don’t have life insurance, critical illness cover or a private health policy. Is this something I should look into getting? I am clueless about this but want to learn about it, so I can prepare for stuff that might come up in the future.

Thanks very much all.

Obviously I don’t know if I’m going to spend my whole career working for my current employers, and my next workplace may have less generous benefits

Don't accept a job which doesn't match the benefits you currently have.

Many jobs move you to statutory sick pay immediately. It's about £86 quid which is disgraceful.

I contracted a serious illness in my early 30’s, a very painful pancreas disease which was caused by gallstones gone astray! Thankfully I kept my job, dropped to 3 days a week but I was off a fair chunk of time at first, thankfully I get 5 months full pay for sickness and then further time at 50% pay. Most others who have same illness as myself end up losing their job. I love my job and genuinely thought I’d go downhill (like I’ve seen others) without work so I hung on. After 5yrs I had a major surgery (whipple) that has helped a lot, I’m back full time now but I am always in pain and copious amounts of opioids still (but am reducing).

What would have helped - probably some critical illness cover. Private medical cover, though I did pay out of pocket to see a consultant at Harley Street for a time, that helped so money for private medical or money aside to pay for appointments when needed. Savings, I was a single parent living in an expensive area, if I lost my job I’d have been in a real mess.

Essentially money would have helped. No-one knows when an illness will strike. I was in my early 30’s when I suddenly started with some abdo pain and I’ve had 2 organs removed in 7 months (ruptured appendix then gallbladder) to wake up in pain and to he told same day there’s a problem with pancreas. My life changed beyond recognition in less than half a year. I guess prepare for a rainy day, critical illness cover I think is a good idea. I’m not sure if there’s restrictions etc, but once you’re sick it’s too late to backtrack etc.

Edited to add sounds like income protection is a much better option than critical illness as I think my illness wouldn’t have been on the list, so pointless

I know, I actually moved to this employer partially because of the benefits- I do use salary sacrifice to up the amounts but it is nothing like what it would cost.for that cover on the market.

How old was he when he became disabled? And how much was he paying in income protection insurance?

31, was hit by a lorry on the way to work. Lost a limb which rendered him unable to do his own job. He actually never paid a premium and I can't remember how much it would have been.

He got hit by a lorry and was able to claim over 10 years worth of income protection without having paid in a single penny?

The reality is that many many people can’t afford to take out this type of insurance. The monthly payments can be a significant expense when you are on a low income.

Yes he was because he was involved in the accident 3 weeks after he took the plan out and it was back to day 1 payment. Policy pays for itself whilst claiming.

You say it's expensive for income protection, but I pay £50 per month (I was 45 when taking the plan out) for £3k per month payment until I retire at 70. There are many ways of reducing this cost (of which I won't go into here because its very individual).

Yes, I pay a larger sum than some can afford but I prioritise it because I'm the main wage earner and if I was to be unable to work from tomorrow due to illness or injury I'm being paid out £828000 which will pay my bills, pension contributions, allow us to actually live instead of rob Peter to pay Paul or get repossessed.

Most policies that I sell for this purpose are around the £30 per month mark.

Sorry should add around £30 for full term cover (ie pays until anticipated retirement). Other options can start from as little as £5.

Very good point, thanks. I’m hoping to stay in my current organisation for a good while, but obviously don’t know if I’ll need to change jobs to somewhere else at some point because of life circumstances changing etc. My current job is in the public sector, so I’m lucky that the workplace benefits are very good but the pay isn’t brilliant (although it is definitely okay for now!)