Malay Chitalia

Financial Planner, MDRT(USA)

Dangerous two ‘C’ – Corona & Cancer

Authored by: Malay Chitalia

Inspiration: Mr. Radhakrishnan Gopinath

Corona Virus has impacted the life of almost half of the world’s total population, and it’s not over yet. Many people lost their dear ones during this pandemic. It had an adverse impact across the all the segment of life; health, emotions, relationships, finance etc.

Being a Financial Planner, I am really concerned about family’s financial health which has lost its bread winner. They are facing a very tough time at present and the similar situation may prevail for few more years for them.

The pandemic has taught us many lessons and one of them is buying an adequate insurance. Modern Financial Science has blessed us with two Risk Management strategies namely Insurance & Assurance by which we can protect our family from any financial disaster. We have learnt the importance of buying adequate medical insurance during this pandemic. We have also learnt the importance of buying adequate life insurance during this pandemic. But what about the families whose sole earning member has contracted a demon disease, he / she is alive and the ongoing treatment cost goes in lakhs & even crores of rupees? Here I am referring to Cancer & its medical, physical, emotional & financial impact on the patient & and his/her family members. Cancer is the disease which does not allow patient to go to work, that means income stops, treatment costs the huge sums, and it really tests mental strength of patient & his family members.

Few months back I had written an article with title “Life beyond Cancer; Plan, Protect & Thrive!”

( Please click this link to read the article: http://bit.ly/37jD713 )

“The pandemic has taught us many lessons and one of them is buying an adequate insurance.”

When I am writing this article, recovery rate of the COVID-19 infection has improved and hopefully we will get the vaccine in next few months. But we must not forget the lesson this pandemic has taught us. Buying adequate health insurance & life insurance is just not enough. We must buy an adequate Critical illness insurance / Cancer specific insurance. Health Insurance just pays off actual cost of hospitalisation incurred (if any). Life Insurance pays the claim only when the person dies. Have you imagined the situation when person has not died, regular medical expenses are piling up & up and income has already stopped as the disease has already sucked the earning capacity of the person?

“Cancer is the disease which does not allow patient to go to work, his income stops, treatment costs the huge sums, and it really tests mental strength of patient & his family members.”

Five aspects to Life beyond Cancer

1) Deciding the right cover for patient and family

I would like to make here a point that having a health insurance for a sufficient amount is inevitable. But along with it, a family should have a buffer cover which provides an additional security to the family. And that is provided by Critical Illness policy or Cancer Specific policies which are available at a nominal premium in the market and they can be very helpful. There are also riders available along with Life Insurance policies which offers such type of “Assurance based covers”.

Health Insurance is classified as an “Asset Protection Insurance”, where as Critical illness insurance is classified as “Income Protection Insurance”. The person who has diagnosed with Cancer; may not be able to resume to any income generating activities for at least next 3 to 4 years. It will result into loss of income for the individual & family. “Loss of Income due to Illness” must be protected with Critical Illness insurance or Cancer Cover Insurance. Otherwise the family becomes vulnerable financially. It makes a big relief for a family in trouble when a considerable amount comes into the family by way of these policies.

2) Critical Illness Policy – an asset protection tool

These Assurance based policies play a major role in an Individual’s Financial Planning. I see Critical illness policy as an Asset protection tool. Every family has some long term financial goals. The goals like Children’s higher education, Children’s Marriage, and assured Retirement of self, requires a big amount of money. Every family saves through cuts & pieces on regular basis for these goals. If a disease like Cancer strikes a family, the family compels to break those savings (assets) to meet the working capital of family & compensates loss of income. If a family has that additional cover, it saves their assets. It works as a shock absorber in a turbulent time.

Cancer Cover assurance policy will surely retire family members from hassle of arranging finance. They will be able to pay full attention towards patient’s health & his treatment. Having enough finance will make family members mentally strong, which plays a vital role in recovering patient from this gigantic disease.

3) Adequate Finance Plan- a psychological boost for patient

Medical science has proved that when a person is confident, he recovers faster. The people who are not very confident takes time to recover. How people feels confident? There are many sources which makes the patient feel confident; caring parents, loving spouse, intimate brother or sister, inspiring thoughts, good books, good videos are few of them. One of the sources is financial well-being also.

When they are worry-free about the finance part, they will have confidence which will help them recover faster. No matter what the cost of treatment is; we can comfortably spend the money. Not only that, if need arises we can go abroad (US, Australia or other medically advanced country) also for treatment. We can afford that also. This feeling really boosts the confidence and helps the patient to heal faster. On the other side, the people who are worried about the cost of treatment, loss of their salary or income, they feel anxious & really struggles for recovery.

4) Living with hope!

There was a time when Cancer was known as a demon. But not anymore. There are people who have already come out of it. Yuvraj Singh, Lisa Ray, Manisha Koirala, Mumtaz are some of the celebrities who have won the battle against Cancer. We know that people can come out of it, but it needs adequate care. And that care is costly today.

In earlier days people were afraid of death, but today people are afraid of illness. The reasons are simple; illnesses are painful not only to the patients but to the relatives also. And the treatment is costly. Whatever capital we have accumulated in our life time, illnesses may blow away in a single event. We may end-up depriving our children from their inheritance right of our wealth.

5) To a vast majority-Cancer is curable!

With the advent of new medical technological cures, most of the Cancer are curable at the early stages; the catch is that there is a need to get financially prepared for it. I have learnt one thing from my profession; having an excess amount of money will not trouble any one; excess money can be utilised for any good cause; but shortage of money has always been a problem. And it may decide the distance between life & death!

Medical science has found out the source of majority of the diseases. But the scientists have not been able to identify the source of cancer as the Genesis of Cancer is still under research. We all know consuming tobacco leads to Cancer, but we have come across many people who don’t consume tobacco still they have diagnosed with Cancer. Rich – Poor, Urban – Rural, Healthy – not so healthy; any one can be a victim.

There is no age for contracting Cancer- it can strike at any age and causes disruption in the lives of the patient and his/her family.  One thing the scientists have researched that consuming tobacco & lineage of Cancer (heredity) in the family increases the possibility of Cancer. But it can victimize literally any one!

Wishing you a very healthy, wealthy & blissful life!

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About Author

Malay Chitalia is an internationally accredited financial advisor with deep local roots. As an MDRT-qualified financial planner, he is part of an elite group of global professionals. With two decades of prolific experience in financial planning advisory, Malay manages an impressive 100 Crores+ AUM for his 2000+ valued clients across India and countries like the US, UK, UAE, Oman, Hong Kong, Australia, New Zealand, and more. Residing in Mumbai with his family, he operates from his firm’s headquarters in Borivali, Mumbai.

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