The cost of critical illness would probably crush your finances
By National Underwriter
By Bill Coffin
An overwhelming majority (90%) of middle-income Americans say they are not financially prepared for a critical illness diagnosis, according to a new study released by Washington National Institute for Wellness Solutions (IWS).
The study, Middle-Income America’s Perspectives on Critical Illness and Financial Security, which surveyed 1,001 Americans ages 30 to 66 with an annual household income of between $35,000 and $99,999, found that only one in 10 feels strongly confident they have enough savings to cover family emergencies and handle the financial implications of a critical illness,such as cancer, heart disease stroke, or Alzheimer's disease.
If diagnosed with a critical illness, most middle-income Americans say they would be forced to draw on savings to pay for out-of-pocket expenses not covered by insurance. But according to the study, many have little, if any, savings to fall back on:
- 75% have less than $20,000 in savings
- 50% have less than $2,000 in savings
- 25% have no current savings
Thirty-eight percent of respondents said they would probably never recover financially from a cancer diagnosis. Forty-five percent said that they would not recover financially from an Alzheimer’s/dementia diagnosis.
Despite this, only 12 percent of respondents said they have explored care-giving options. Sixty percent have not discussed financial planning for critical illness. And eighty-eight percent have not broached the topic with loved ones or a financial advisor.
Originally published on LifeHealthPro.com