We’ve all seen the TV ads spruiking life insurance, TPD insurance, funeral insurance and more. But, with the competing costs of school fees, mortgage repayments and the day-to-day cost of living, is it really work the expense?
Many of us think “It’ll never happen to me,” but for Theresa*, a terminal illness diagnosis became only too real.
The ‘Bow Tie Man’, Adrian, met Theresa and her husband Michael* in 2009 to discuss their insurance needs. With two children aged nine and six, the couple were keen to speak with Adrian about life insurance and their options for financial cover.
A self-employed Physiotherapist, Theresa had no sick leave, annual leave or long service leave entitlements to bank on. As a non-smoker with a healthy lifestyle, Theresa had no apparent health concerns and a low-risk profile.
Adrian advises, “as part of every client consultation, we discuss the couple’s financial situation, their desired level of cover, their health profile and the level of risk they are comfortable with. I present all the options and recommendations and then work with them to secure the best level of cover for their preferences.
We discuss not just Life Insurance, but Critical Illness/Trauma, Total and Permanent Disability, and Income Protection Insurance. A terminal diagnosis or debilitating injury can be just as financially devastating to a family as a fatality. Sometimes more so, as long-term care and treatment can cripple a family struggling to deal with an already heartbreaking situation.
In Theresa and Michael’s case, the couple decided on Life Insurance, but felt they didn’t need Trauma/Critical Illness or Income Protection insurance, as they were young, in good health, and it seemed an additional unnecessary expense given their lifestyle and circumstances.
Only six months later, Michael rang Adrian with some shocking news. The unbelievable had happened – Theresa was diagnosed with breast cancer. Adrian recalls, “Michael quietly asked if they were covered for this eventuality. Unfortunately, without Critical Illness or Income Protection, the couple were unable to access the financial assistance for treatment and to ease the pressure of the monthly household expenses.”
In March 2013, Adrian negotiated for Theresa’s family to receive her $2 million Life Insurance claim. Paid only days before she succumbed to the disease, the financial assistance supported her young family in the period after her death, but as Adrian says, “the family suffered for almost three years following Theresa’s diagnosis with significant medical bills and financial stress. I could have taken the financial stress away, which would have assisted the family in coping with the emotional stress of their situation.”
Think it’ll never happen to you? Think again.
Speak to an expert like Adrian to explore your circumstances and options, and plan for the unexpected. “We never believe tragedy will strike at home but when it does, the securing of knowing you’re financially covered can be a great comfort.
Contact Bow Tie Financial Services to make an obligation-free appointment today.
* Names changed.