Thinking about serious illnesses such as cancer or heart disease is difficult and we all hate talking about uncomfortable things – but unfortunately people do get ill, seriously ill - and it is our job to help people be prepared financially should they experience unexpected income loss due to illness.

Figures from Cancer Research UK reveal every two minutes someone in the UK is diagnosed with cancer and 1 in 2 people born after 1960 in the UK will be diagnosed with some form of cancer during their lifetime. Despite this, according to research by Scottish Widows, only a third (32 per cent) of people in the UK have life insurance, and just 9 percent have taken out critical illness cover.

An analysis released by Macmillan Cancer Support states that the average UK family would not be able to afford cancer, and could be forced to find hundreds of pounds a month if they were hit by the disease. Macmillan calculates that the average family is left with around £365 each month after paying for necessities such as bills, food and everyday travel. But previous research shows that cancer has an average monthly cost of £570 for the vast majority (83%) of cancer patients. Working parents with young children are hit hardest by the financial cost of cancer.

The charity warns that an adult being diagnosed with cancer could therefore leave the average British family with a potential shortfall of around £200 a month even if they were to cut out all leisure activities and reduce their spending to bare essentials.

Extra costs often incurred include travel to and from hospital appointments; an increase in household bills due to being at home more and feeling the cold after treatment; and paying for extra support with help at home such as cleaning. And many people have to cut down their working hours or stop working altogether because they are too unwell resulting in a significant loss of income.

Macmillan warns that the average family could be forced to turn to their savings, credit cards, take out a loan or even sell their home to cover the potential shortfall.

Single mum Devry Souayed, 55, from Lancashire, was made redundant from her civil service job a year prior to her breast cancer diagnosis in 2013. As a result of ongoing treatment, she is still too ill to work. She told Macmillan:

“Cancer has stripped my health and my bank balance. When I was diagnosed, I was focused on getting better for my children, with two still living at home, and had no idea that it would financially cripple me too. I was forced to rely on benefits and my income halved.

“The stress of living on a financial knife-edge has made me physically sick. I feel so guilty that my children are missing out on school trips and I’ve had to cut back on birthdays and other treats…I’m still struggling to get by.”

The financial impact of cancer

It may not be the first of your worries, but cancer can be tough on your finances. You may earn less if you need to stop working or reduce your hours. You may spend more on everyday costs like heating and travelling to hospital. But with the right cover in place your money worries could be lessened, so you can get back to the things that matter most.

Critical illness insurance can provide a significant financial boost at a time of emotional stress and financial difficulty, and can really help families who are struggling to come to terms with the impact of cancer.

There are some great protection products around that help to prevent hardship and help to protect families in the event of the unexpected happening. For further advice, please contact us on 0800 612 8005.