The Financial Dangers of Heart Failure
Although trauma and income protection insurance have been around for some time, the benefits have really only been widely recognised in the past 10 years. This may be due to an ageing population and increased incidence and awareness of major events like cancer and heart disease which can pose considerable risk to the financial security and future prosperity of more and more Australians.
In 2010, 21,700 people died of heart disease – but the real news is that the number of Australians dying from a heart-related incident has actually fallen over the last 10 years, while the number of people living with Chronic Heart Failure (CHF) has risen by 11% since 20011. Around 30,000 Australians a year are diagnosed with this condition2.
CHF occurs when the heart muscle becomes too weak to pump blood effectively through the body, which can lead to long-term damage and cause other side effects. Modern medicine has come a long way in the treatment and ongoing care of people with this condition, however there’s no getting away from the fact that living with a chronic medical condition can be expensive. Very expensive.
For starters, heart medications can cost in the region of $100 a month for those who don’t qualify for pharmaceutical discounts. Then there’s the gap patients have to pay if their specialists (and there may be more than one) charge more than health rebates cover3. And then there’s the fact that most people will need several months of convalescence following a major heart trauma, which often results in loss of income.
While some employees will have enough sick and/or long service leave accumulated to see them
through, those who don’t, and the self-employed, are likely to be significantly out of pocket and keen to resume work as quickly as possible. And many will – but for some, like those who operate commercial vehicles, it might not be as simple as feeling well enough to return to work.
Recovery periods vary depending on the severity of the illness and resulting damage and medical standards for licensing, published by Austroads4, set specific timeframes for when people recovering from a major medical event such as a heart attack can drive again – both privately and commercially.
It can happen to you
Cardiologist, Dr John Woods says age is a significant risk factor for the development of heart disease.
A heart attack is very uncommon under the age of 40 and women lag 10 to 20 years behind men – but the gap gradually narrows with age.
“Recent data demonstrates that whilst the incidence of heart attack remains significantly greater in men than in women, there have been trends towards a decrease in men and an increase in women over recent years,” he says.
In his experience, people usually respond well to driving restrictions placed on them after a severe heart attack but, “Occasionally restrictions can pose severe financial embarrassment.”
Dr Wood has two tips for someone confronted with a heart problem:
1. Be aware of the symptoms of a heart attack, and seek help very early.
2. Don’t give up hope as medical therapy has made a huge difference to peoples’ lives in this situation.
Ordinary drivers holding a Class C licence are not allowed to drive for two weeks after an Acute Myocardial Infarction (AMI) (heart attack) or insertion of a pacemaker; four weeks after bypass surgery and a heart-stopping six months after cardiac arrest or insertion of an ICD (Implantable Cardioverter Defibrillator) as a result of a cardiac arrest.
Together, trauma and income protection insurance can provide a significant financial safeguard for clients who suffer a major event like a heart attack. When calculating trauma insurance needs for clients who earn a living driving or operating machinery, you may have to consider larger lump sums to cover longer periods of rehab.
When assessing income protection needs, it will be important to put in place policies which contain an ‘own occupation’ definition, that will pay out if you can’t work in your own occupation, rather than an ‘any occupation’ definition which will only pay out if you can't work in any occupation at all.
If you would like to review your existing Risk Insurance Portfolio or receive a Report on the level of cover you should have please call Gordon Hatch on (02) 9411-4161 or email gordon@taurusfinancial.com.au, for a no cost or obligation Risk Insurance Review.
1. ABS statistics 20 March 2012.
2. National Heart Foundation press release 20 March 2012.
3. Taxpayers may be eligible for the Medical Expenses Tax Offset for net medical expenses over a certain threshold