Life was good for Leo Colucci. Happily married, he owned a house and his job as a brand manager for a tech company was secure. He thought little of it when his financial adviser suggested he take out critical illness cover when he arranged his mortgage. "It was relatively cheap and I could afford it," he says.
But Leo's life was turned upside down when in 2001, aged 31, he was diagnosed with multiple sclerosis (MS), an incurable neurological condition. "It was like the rug was pulled out from under me and I thought my life was over," says Leo. "It was devastating."
Leo had forgotten about the insurance he'd bought until his wife bumped into their financial adviser in the supermarket. When she told him about Leo having MS, the adviser told her to claim on the insurance. It was a suggestion that changed the couple's life.
"The critical illness cover paid off my £80,000 mortgage," he says. "Most importantly, it also meant I had enough money to buy a drug privately that slowed the progression of the disease, enabling me to continue a successful business career for a further 10 years. At the time the drug, which costs about £700 a month, wasn't available on the NHS." Although the NHS now pays for the drugs Leo needs, state help is minimal – and MS affects about 100,000 people in the UK.
Adapting to a new life
"People think something like this won't happen to them," says Leo. "I was young, and I kept in shape. Regular travel was a fundamental part of my job, and I can't do that any more. When I was diagnosed I thought my life had come to an end. What started with pins and needles in my legs over a couple of days, turned into paralysis on the third day.
"I had a pretty intense job and it was tough walking away from it – but eventually I had no choice. Having the right financial protection meant I had time to adapt to my situation."
Although MS is incurable, Leo remains upbeat: "We've since bought a bigger house, which we wouldn't have been able to do without the payout. And best of all, I have an amazing wife and kids."
Protect your piece of mind
Though medical advances are improving survival rates for those with a critical illness, diagnosis can change your life dramatically – not just emotionally, but financially too.
Although a good employer will be understanding, sick pay might only be for a short period. If you're self-employed, and have little or no savings, being unable to work could cause serious financial problems almost straight away. In either case, state support may not be enough. But while you're coming to terms with your condition, mortgage payments, council tax, childcare, food and bills all need to be paid. You might even find you have extra costs such as travel to and from hospital, adapting your home, or medication.
A protection product can provide a financial cushion. Critical illness insurance, for instance, pays out a lump sum on the diagnosis of certain medical conditions. The money can be spent however you like – on the mortgage, bills, childcare or private medicine. Even a small amount of cover would make life easier, letting you concentrate on getting better. Other options are income protection insurance or life insurance. A financial adviser can help to make sure you have the cover that's right for you.
