Childhood cancer and financial preparedness – the crucial role of life insurance

According to CANSA around 800-1000 children in South Africa are diagnosed with cancer every year. This is an illness that clearly does not discriminate by age. While it takes a tragic toll on a child’s health and wellbeing, it also puts parents through emotional and financial hardship.  

Joretha Bothma, Head of Product Development, Underwriting and Claims at Momentum Life Insurance says understanding these financial implications is crucial for effective planning, particularly the role of life insurance in providing security during such trying times. “Our statistics show that the incidence rate of childhood cancer has been increasing and it’s always one of the top two claim causes under our child critical illness category,” notes Bothma. “The cost implications of this dreaded disease are vast, so it is best to plan ahead and be prepared.”

Childhood cancer treatment is often a long and costly journey. Medical expenses often include hospital stays, chemotherapy, radiation, surgeries, and other specialised treatments. Additionally, Bothma says the costs pile up with medications, medical equipment, and home care services. Even with medical aid, out-of-pocket expenses can quickly add up.

The financial impact of childhood cancer extends beyond medical costs. Bothma says a parent’s ability to work is often compromised due to caregiving responsibilities, leading to a significant burden on the family’s income. This loss, combined with ongoing living expenses, can create a financial crisis for families.

Bothma emphasises the importance of planning ahead. “When a child suffers from a critical illness, it can have a significant impact on the whole family, both emotionally and financially. Adequate financial planning and insurance coverage can at least help to ease the burden, so the family can focus more on their child and the trauma they are all enduring,” says Bothma.

Life insurance plays a pivotal role in safeguarding families against the financial repercussions of cancer. Bothma says critical illness cover for children provides protection against the financial consequences of a child suffering from a range of critical illnesses. For instance, Momentum’s complete range of critical illness benefits automatically includes critical illness cover for children equal to 10% of the parents’ benefit amount, with a maximum payout of R250 000 per parent policy (and a maximum of R500 000 from both parents’ policies).

Bothma notes, “Parents should be aware that some critical illness insurance policies actually provide for their children at no extra cost. This benefit becomes a crucial component of any family’s financial planning.”

Importantly, Bothma says any critical illness claim payout for children should not reduce the parents’ cover either. “Each child is treated as a separate life on our Complete Critical Illness Benefit, meaning that a claim for one child will not reduce the parent’s cover or the cover provided for any other children linked to the policy,” she says.

As we observe Childhood Cancer Awareness Month this September, Bothma says it’s essential to highlight the financial implications of cancer and the critical role life insurance plays in supporting families with cancer.

“Parents should take steps to be in a financial position where they can provide the best possible medical care for their children. Having comprehensive critical illness cover in place is probably the most important place to start,” Bothma concludes.

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