Total and Permanent Disability Insurance Case History 1
The following is an example of a Case History in relation to Total and Permanent Disability Insurance. If you require advice regarding a Total and Permanent Disability Insurance Policy, please contact us directly.
TPD Cover available as standalone or packaged with Death & Trauma Insurance.
Client Name: Marion
Status: 29, single, no children
Marion earned an income of $50,000 and had $3000 of credit card debt and a $15,000 car loan. She also had $100,000 Life Insurance cover provided under her superannuation policy, which had an accumulated value of $20,000.
After seeing a friend become financially vulnerable and unable to work following a skiing accident, Marion decided it was a good time to take out insurance to help protect herself financially in case something similar happened to her.
With the help of her financial adviser, she selected $200,000 Life , Total & Permanent Disability and Trauma / Diagnosis cover in addition to the life insurance provided through her superannuation. The combination of superannuation and stand-alone insurance would provide Marion with a lump sum if she became totally and permanently disabled or suffered a specified traumatic condition. It would enable her to pay for any necessary treatment or alterations to her apartment.
Having organised cover to provide her with a lump sum to help deal with any immediate issues, Marion was still concerned about the result of suffering an illness or injury that prevented her from working. How would she pay her bills and afford to live?
Marion’s employer provided up to four weeks of paid sick leave but without a regular salary, Marion would have no other income to rely on. She chose Income Protection cover with a monthly benefit of $3,125 (being the maximum cover available – 75% of her income), a four-week waiting period and benefits paid to age 65. Marion chose to include an increasing claim option which would ensure that, if she was on claim, her monthly benefit would keep up with inflation.
At age 32 Marion was diagnosed with Breast Cancer. She underwent major surgery and following chemotherapy. Rehabilitation was long and lonely and costly. Her insurance funding took the fear of financial vulnerability away – she received her Income Protection cover paid to her for one year until she decided to go back to work. She also received a lump sum payment from her Trauma / Diagnosis cover of $200,000. Without these insurances she would have had the added burden of being financially terrified, as well as all the medical fear and problems to deal with.
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