Income Protection

Name: Mark and Jessica

Both felt they were in a good financial position, good jobs, high income and small mortgage. So what could possibly go wrong?

Mark and Jessica are married with two boys, Luke (5) and Hudson (2). Mark worked as a Project Manager on $160,000, while Jessica worked part-time as a bookkeeper earning $45,000. They both felt as though they were in a good financial position with less than $140,000 outstanding on the mortgage and well paying jobs.

However, their vulnerability was exposed when Mark, at the age of 38, was diagnosed with bowel cancer that required urgent surgery. Over the course of the next six months, Mark underwent a series of operations to remove a large portion of his bowel, enduring lengthy, painful and costly treatment. This led to Mark having to take more than 10 months off work from his job; which eventually ended up becoming a lifestyle and career change allowing him to spend more time with his family and less time committed to work.

Although nothing could be done to stop the cancer, Mark was able to receive $10,000 each month; being a payment from his income protection policy; to provide income to continue to financially provide for his family until he was able to rejoin the workforce. He returned to work with the same company almost a year later but in a much less stressful role behind the scenes. The new position brings with it a reduced salary. However with  no outstanding bills, Mark and Jessica have the financial comfort they need and want. The new job came with the added bonus of less late nights at work and more time with the family. Without access to the monthly insurance payments Mark and Jessica would have had to source income by drawing down on the equity in their home.

As part of Mark's "Risk Management Plan" he was also able to access a lump sum benefit of $400,000 through his Trauma cover. This allowed him to clear the mortgage, put money in the bank and allow Jessica to ease back on work to support him and the kids through this difficult time. Without the pressure of mounting bills, Mark was able to focus all his energy on his recovery, knowing that the insurance strategies that were implemented were there to provide that safety net for the family.