Serious Illnesses and the Importance of Life Insurance

Our life is incredibly beautiful, but fragile—very fragile. A diagnosis of illness can, in the blink of an eye, push all our dreams and plans into the background.

In addition to the immediate impact on our bodies, an illness—even a relatively minor one—ultimately places enormous constraints on our daily lives and those of our families, particularly in terms of work and, consequently, financially.

The financial impact of health care on the wallets of the Portuguese is enormous, especially when we consider that the minimum wage has not yet reached 1,000 euros and that the cost of living continues to rise.

So, when we consider the physical, emotional, and financial impacts together, we end up facing an enormous challenge if we are struck by a serious illness.

A critical illness life insurance policy allows us to receive a lump-sum payment upon diagnosis, which will help cover not only the expenses associated with the illness but also any other day-to-day or family expenses during a vulnerable period when income is lower.

The Most Common Serious Diseases and Their Impact

But what are the most common serious illnesses in Portugal?

According to the National Institute of Statistics (INE), the most prevalent serious disease in Portugal is hypertension, a condition that affects more than 20% of the population and is a risk factor for myocardial infarctions and strokes (CVA), diseases that, combined, affect approximately 300,000 Portuguese people each year.

We must not forget the number of Portuguese people who suffer from diabetes and kidney failure, since—just like high blood pressure—the former can lead to more serious diseases, while the latter requires extremely costly treatments. In total, these diseases affect more than 1 million Portuguese people.

Our final highlight is the alarming growth of the Cancer incidence in Portugal, a disease for which the number of diagnoses rose from 23,000 per year in 2000 to more than 60,000 in 2021 (latest available data).

While many diseases, when kept under control, allow people to lead perfectly normal lives, the same cannot be said of diseases such as cancer, strokes, and heart attacks (due to their aftereffects) or kidney failure.

Due to the complexity of the treatments required to manage these diseases, they significantly affect patients’ quality of life and work, which, in many cases, leads them to take a leave of absence from their jobs in order to receive the necessary medical care—a situation that can result in a major disruption to their financial stability.

The Financial Impact of a Serious Illness

More than 2,000 euros per month—that is the amount that Portuguese people spend out of pocket each year to access health care, a figure that roughly equals 20% of the annual budget of most households in Portugal.

This amount may seem too high, but if we look at the costs of medical treatment, medications, and hospital stays, we’ll see that it’s not quite like that.

For example, the average cost of hospitalization at the Lisbon Hospital Center is, according to the SNS, at 421 euros, whereas at the Coimbra University Hospital it is 371 euros.

When it comes to cancer treatments, however, the costs skyrocket, and a single patient can cost between 60,000 and 90,000 euros.
Finally, in the case of medications, even though the government subsidizes some of them, their cost can reach, according to INFARMED, the 1,517 euros per year for the treatment of, for example, kidney failure.

When these figures are added up, we see that the financial impact of a serious illness on the annual budget of Portuguese households is extremely significant and, not infrequently, goes hand in hand with a loss of income due to the inability to work and the need to take out loans to help finance treatment, which increases the risk of falling into debt.

There is, however, a way for Portuguese citizens to mitigate this financial impact while still having access to timely, high-quality health care: Critical Illness Life Insurance.

The Importance of Life Insurance with Critical Illness Coverage

Life insurance with critical illness coverage is a type of insurance that guarantees beneficiaries, in the event of death, disability, or a critical illness, a payout of the insured amount based on the coverage purchased.

Therefore, if you are diagnosed with a serious illness, you will immediately receive the agreed-upon amount, which will help you cover any necessary expenses.

This assistance proves to be extremely important not only in providing access to high-cost health care—such as that required for cancer treatment—but also in mitigating the financial impact of serious illnesses on the monthly income of those who must stop working to fight these “invisible enemies.”.

All of this ultimately provides greater emotional and financial comfort to the patient and their family, allowing them to focus solely on the recovery process.

At this point, you may be wondering if traditional life insurance isn’t enough, but the truth is that there are significant differences between it and life insurance that includes critical illness coverage.

The main differences between these two types of life insurance lie in two aspects: their purpose and the timing of when the policy takes effect.

Unlike traditional life insurance, the Life Insurance with Critical Illness Coverage Its primary purpose is to protect the insured when he or she is diagnosed with a serious illness; at that time, the insured will receive the agreed-upon benefit amount, which will help maintain his or her financial stability (and that of his or her family) at a time when he or she may experience a drop in income and an increase in expenses.

As for when the policy takes effect, traditional life insurance generally pays out upon the insured’s death or, in the event of disability, when the insured has a general disability certificate (which can take years to obtain), and the disability must meet a specific percentage requirement. In the case of Critical Illness coverage, the policy is triggered immediately when the insured is diagnosed with a critical illness listed in their policy.

To better understand what we’re talking about, let’s look at the example of Real Vida Seguros’s Life and Pension Insurance, one of EXS Seguros’s partner insurers.

Real Vida Seguros' Life and Pension Insurance

The Life and Pension Insurance plan is designed to provide the insured with a financial safety net in the event of a serious illness, ensuring access to the best possible health care.

The benefits of this insurance don't stop there, as it also offers the policyholder:

• Access to healthcare services, such as online doctors, in-home doctors, and telephone medical consultations;
• Optional Critical Illness coverage that includes a Precision Medicine service which, in the case of cancer, for example, provides a molecular profiling analysis of the insured;
• Daily hospitalization benefit to be paid while the insured person is hospitalized;
• Additional coverage in the event of death due to an accident or a traffic accident;
• Option for additional coverage for beneficiaries or heirs to cover funeral or repatriation costs.

In terms of coverage for serious illnesses, Real Seguros“ Previdência Life Insurance provides policyholders with financial support for treatment, medications, and hospital stays in the event of cancer, myocardial infarction, coronary bypass surgery, end-stage renal disease, stroke, and organ transplantation.

Because different illnesses require different responses, Previdência Life Insurance offers the insured maximum flexibility in how they use the funds received, allowing them, among other things, to pay for necessary treatments, make home modifications, and provide support for their family. This way, the policyholder can enjoy complete peace of mind while recovering, without additional pressures or financial challenges.

How EXS Seguros Can Help

How to choose a Life Insurance with Critical Illness Coverage? EXS Seguros can help.

EXS Seguros understands that choosing the right life insurance can be a challenge. Our team of experts helps you carefully assess your profile and needs so we can offer you the best options on the market when it comes to your health.

Therefore, by working closely with trusted insurance companies, EXS will ensure that, during such a vulnerable time—such as when you’re diagnosed with a serious illness—you’ll receive the support you need and deserve.

Conclusion

Living a healthy life isn't a guarantee. But preparing for the worst-case scenario is a choice.

From one moment to the next, we may have to face a serious illness that lands us in a hospital bed or an operating room, preventing us from working and earning an income. That’s when the Life Insurance with Critical Illness Coverage.

With life insurance that includes critical illness coverage, you can be sure that, upon diagnosis, you will receive the agreed-upon benefit amount to help you cover the loss of income and the extra expenses that arise from any illness.

Since prevention is better than cure, don’t put off until tomorrow the coverage you can get today. Contact EXS Seguros and find the best solution to ensure your financial security!