Case Studies

We deal with lots of different people in various situations. We wanted to share some of their stories with you.

Couldn't see the value in his income protection.

Tom aged 42, had an accident involving a knife in his kitchen while preparing lunch which put him in hospital initially for 2 weeks. As a self employed landscape gardener he was unable to do any work while his leg was healing. He had another set back which saw him go back into hospital for another operation. In total, this freak accident cost Tom 4 months off work. When Tom called to make the claim on his income protection, he said "I was going to cancel this policy last year because I thought it was a waste of time – I am now so thankful that I didn't". Tom claimed on his income protection policy which ended up paying him for 3 months.

THE SIMPLE MESSAGE IS, income protection for the self employed is very valuable.


Going to cancel income protection policy – unable to afford the premiums.

Darryl called our office one morning in quite a distressed state. He explained that he could no longer afford his income protection policy and wished to cancel it. We were familiar with his policy benefits, occupation, earnings etc and was somewhat perplexed that he was contemplating cancelling his policy. We broadly discussed Darryl's situation with him and suggested that we put in a claim for income protection as he was in my view eligible to claim. We informed Darryl that he should have called us before using up his annual leave and that if he was in the care of a doctor (due to stress), and not working that we should submit a claim with the insurer. Darryl went immediately on claim and was on claim for nearly a year (receiving over $50k of benefits) and his premiums were waived whilst he was on claim.

THE SIMPLE MESSAGE IS, that if you have a policy and you are not sure of what it covers, talk to your adviser and/ or the insurer before doing anything in haste.


Claiming a tax deduction for income protection premiums.

Katrina is a long standing client of our business and despite being involved in the accounting/finance area had forgotten to claim her income protection premiums as a deduction against her personal income. When conducting her annual review and despite annual correspondence from the particular insurer, we found that Katrina had omitted to claim this particular item over a number of tax years. We contacted the relevant insurer and gained premium data for each year for Katrina and she submitted an amended tax return for the previous 5 years and received a handsome tax refund.

THE SIMPLE MESSAGE IS, not to overlook the tax deductibility of some elements of insurance. Keep good personal records.


Trauma claim and still working

Carey was a 39 year old self employed electrician. He and his wife purchased life insurance and trauma insurance. 5 months after the policy was established he had chest pains while driving. He went directly to the hospital and found out that he was having a heart attack. Being young and fit, Carey was out of hospital in a couple of days and back working after 3 weeks. When the doctors investigated it turned out that he had a family history of high cholesterol which Carey was not aware of, and as he was fit, healthy and a good weight he had never been to the doctor for a blood test. The insurance company paid Carey the trauma benefit.

THE SIMPLE MESSAGE IS, claiming on your trauma policy does not necessarily mean that you need to be out of work for a long period of time. The other message is have regular checkups – even if you look fit and healthy!


Trauma payout for the family

Michelle was diagnosed with breast cancer. She went through months of treatment which was successful. She was eligible for a payment under her trauma policy. When we told Michelle that the money was on it's way, we asked her if she had decided what she would do with the money. She replied that the whole family was going to Disneyland. She said that when she was going through treatment it was one of her biggest regrets that the family had never been on a big trip like they had talked about – so now that the money from the trauma policy was coming in they were going to do it!

THE SIMPLE MESSAGE IS, we always talk about trauma to help pay medical bills – but paying for this trip was therapy for Michelle's whole family.


No cover... turns your world upside down.

The Smith family looked like they had it all. Dad – Lance, 44 a self employed Engineer earning $240,000. Mum – Sally 41, a qualified physiotherapist, at home full time with their 3rd child aged 4 with 2 other kids at school. Living in their dream home. Lance suffered a stroke which left him hospitalized for 9 months, permanent paralysis down his left side and blind. Unfortunately for the Smith family, Lance didn't believe in insurance. The consequences for the Smith family:

  • Lance will never work again and needs full time care. He will never drive a car again or walk unaided.
  • Sally will now be the breadwinner of the family until retirement. She will have to go back to work full time.
  • Sally will also have the additional commitment of being Lance's home carer.
  • The family have to sell the house and downsize in a cheaper area.
  • The kids have to move schools
  • The youngest child is now in full time daycare.
  • The family have to get a new car which can accommodate Lance's wheelchair

THE SIMPLE MESSAGE IS, while insurance would not have stopped this tragic event from happening to Lance and his family, it would have given them financial security and not turned their entire world upside down.


Have you thought what would happen to your family?