Elaine is a 53-year-old high-flying executive earning $370,000 per year. She is single and has no children. Three years ago, Elaine started her own consultancy business. She has her own home valued at $1.5m with a mortgage of $750k. She also has a share portfolio valued $200,000, with a margin lending debt of $80,000.
Elaine goes for her scheduled mammogram and is diagnosed with early stage breast cancer. She is unable to work whilst she is having chemotherapy, with the chemotherapy to continue for a period of 6 months.
Elaine is one of the lucky ones. She was diagnosed early and by having income protection insurance in place, she:
- received monthly benefits of up to 75% of her usual salary, which enabled her to keep up with the interest payments on her debts;
- was covered for some of her mother’s travel and accommodation expenses, given her mother had travelled from overseas to be with Elaine during her treatment; and
- was able to focus on her treatment and recovery, whilst not having to worry about a loss of income during her recuperation.