When life throws a curve ball, it can do major damage to your lifestyle and financial security, or it can be batted away, allowing life to go on as normally as possible, and loved ones to feel the same security that they always did. That is the purpose of personal insurance – it turns a negative experience into a positive outcome.
David saw a financial adviser in 2010, who reviewed his personal insurance cover. David appeared fit and healthy. He was a doctor, so his medical training and experience gave him further reason to be completely confident of a continuation of such good health.
His financial adviser, after conducting an analysis of David and his wife’s current lifestyle and financial status, suggested that David increase the personal insurance cover that he held so that family debts would be covered in case anything was to happen to him. David agreed.
Sadly, two years later David suffered a stroke. He was unable to work during the ensuing period of treatment and is now limited in his ability to work. His reduced salary placed considerable financial strain on his family. But having accepted the advice of financial adviser, David was provided with a substantial financial payout which, he says, gave him “a lot more confidence after a lot of uncertainty in a difficult time”.
David says the support he received from his insurer gave him time to simply focus on his recovery and health, rather than feeling stress about the further implications of his condition. David says that as a doctor, and as a person that has suffered a serious illness, he believes a financial adviser should always raise the topic of personal insurance with clients, and clients should always consider whether their coverage is enough.
If David had not accepted the advice of his financial adviser, he would have faced the reality of needing to sell one of his hard-earned assets, potentially at a price below value, during an awful period of turmoil. Instead he simply relaxed and recovered, and that’s what personal insurance is all about.
Even if you already have life insurance, it’s worth checking with your financial adviser to ensure you have enough coverage if a traumatic event occurred.
Disclaimer: This article has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.
This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.