Michael is a 39-year-old carpenter, married with 2 young children. He earns an annual income of $80,000. He doesn’t smoke and generally looks after himself. While out running Michael tripped, injuring his knee.
He needed a full knee reconstruction and had to take time off work to accommodate the two-day hospital stay and estimated six to eight week recovery. As a contractor Michael doesn’t have any sick leave entitlements and because he wasn’t injured at work, workers’ compensation doesn’t apply. Although Michael’s private health insurance will meet a reasonable portion of his medical bills, his wife Jenny is concerned about their day-to-day costs and mounting pile of bills. Fortunately, Michael took out income insurance on the advice of his financial planner.
After injuring his knee Michael and his Financial Planner completed a claim form and soon started receiving his full total disability benefit amount each month. Six weeks after surgery Michael had recovered enough to go back to work part time. Although he no longer qualified for total disability, he was reassessed and started receiving partial disability payments while working part time.
Thanks to his income insurance, Michael was able to keep up with his mortgage repayments and meet day-to-day expenses without having to dip into his savings or reduce his standard of living.
(This case study is illustrative only and is not an estimate of any fees or costs you will incur.)