How a financial planner can support you through serious illness and recovery

Being diagnosed with a serious illness might feel overwhelming, but you don’t have to go through the experience alone. With the right support, you can focus on what matters most – your recovery.

Indeed, while Cancer Research UK recently reported a new high in the number of cancer cases – more than 403,000 diagnoses a year – survival rates have significantly improved over the past 50 years.

According to the BBC, 10-year survival rates for breast cancer rose from 42% in 1971 to more than 76% in 2018, while 90% of individuals in England and Wales with melanoma skin cancer can expect to live at least 10 years after diagnosis.

With more people living longer, fuller lives after treatment, it’s important to protect your future and that of your loved ones by managing your long-term financial security at each stage of your journey.

Read on to find out how a financial planner can play a crucial role in supporting you and your family through serious illness and recovery, ensuring you’re in a strong financial position moving forwards.

Suggest strategies for easing immediate financial pressures

While financial planning might not be at the forefront of your mind if you receive a serious medical diagnosis, money could quickly become a serious concern.

For example, you might need to reduce or stop working while you’re receiving treatment, which is likely to diminish your household income. Equally, you could face additional costs, such as travel to and from medical appointments or private healthcare.

A financial planner can review your finances and suggest short-term strategies for maintaining cash flow if your income or outgoings change. This might include:

• Providing a clear overview of your current financial position
• Offering an impartial perspective and encouraging data-driven, rather than emotional, decisions
• Advising you on how to withdraw the funds you need as tax-efficiently as possible, while preserving long-term wealth, such as pensions
• Identifying sources of financial support, for example, employee benefits, state benefits, and claims under any financial protection you hold (more on this later).

As such, financial advice could give you the breathing space you need to prioritise your health.

Review your financial protection and support you in making a claim

If you’ve taken out financial protection, this could provide a valuable source of funds during your illness and recovery.

For example, critical illness cover generally pays out a lump sum if you’re diagnosed with one of the serious illnesses specified in your policy. If you have income protection, this could provide regular payments to replace some of your earnings if you’re unable to work.

That’s why reviewing your protection arrangements early is so valuable.

You might not remember all the details of the protection you hold or how to access the benefits. You may even have cover that you’re unaware of or have forgotten about, such as policies included in your employment package or arranged when you took out a mortgage.

A financial planner can help by:

• Clarifying what protection you have and what it covers you for
• Explaining complex policy terms and definitions, ensuring you understand your entitlement
• Guiding you through the claims process and helping you access funds as soon as possible
• Liaising with your insurance provider to resolve any issues that arise.

Understanding how much financial support you’re entitled to and when payments will start could give you valuable peace of mind, especially if you’re facing a reduced income or unexpected costs.

Help you create or update your estate plans

Being diagnosed with a serious illness such as cancer may prompt you to reassess your long-term plans. Or perhaps this is the first time you’ve thought about matters such as how you want to pass your assets on to the next generation and what legacy you’d like to leave.

While you might feel uncomfortable thinking about these scenarios, taking steps to make your wishes clear puts you in control and may bring a valuable sense of reassurance.

Indeed, creating or updating your estate plan allows you to:

• Appoint a person or people you trust to make important health and financial decisions on your behalf if you lose the capacity to do so
• Provide for loved ones who have no automatic rights under intestacy rules (these determine how your estate is distributed if you die without a will), such as stepchildren
• Nominate someone to receive your pension and life insurance benefits
• Ensure that vulnerable individuals, such as children, are provided for
• Set out how you want your assets to be passed on after your death
• Minimise Inheritance Tax (IHT) liabilities for your beneficiaries
• Reduce the risk of family disputes, upset, and stress.

As you can see, there’s much more to a well-structured estate plan than having a will; you might choose to set up trusts, register Lasting Powers of Attorney, and so on.

A financial planner can advise and support you in navigating this sensitive and complex matter by:

• Reviewing your existing plan, if you have one, and identifying potential gaps, such as outdated or incomplete information
• Explaining complex estate planning tools, like trusts, in jargon-free language and helping you weigh up their pros and cons
• Checking that your beneficiary nominations are up to date across all your estate planning documents, such as pension schemes and insurance policies
• Assessing your current IHT exposure and suggesting strategies to reduce your liability
• Working together with your solicitor to ensure your plan is legally compliant and aligns with your financial goals
• Regularly reviewing your plan to ensure it reflects your current circumstances and wishes.

Provide ongoing guidance and support

At The Aspire Partnership, we build lasting relationships with our clients, many of whom we’ve supported for years or even decades.

Your financial planner can help you throughout the course of your illness, from diagnosis and treatment to recovery and beyond.

We can review and adjust your plan as your circumstances and priorities change, ensuring it remains a practical and useful roadmap for achieving your goals.

To find out more about how we can help, please get in touch by email helpme@aspirellp.co.uk or call 0117 9303510.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.