Name: Alison and John
Alison and John became clients of AFRM in 2009. Alison is 44 and is an owner/equity partner in a recruitment firm. She is married to John, aged 52, who is a property developer. They were in the process of adopting their first child when they became clients.
They were in a strong financial position, considering their combined annual income with a strong asset base (approximately $3m). However, both Alison & John were concerned about their level of debt which was approximately $1.1m. Having analysed their affairs and provided advice on their potential areas of exposure to risks Alison and John implemented significant levels of Death, TPD, Trauma and Income Protection insurance, but did express some reservations about the costs.
In 2011, when we contacted Alison for their second annual review, she informed us that she had been diagnosed with Breast Cancer earlier that year. Since diagnosis Alison had been through two operations and was about to undergo an intensive program of radio-therapy. She was doing it tough and had taken quite a bit of time off work which, as an owner of the firm, was having a detrimental impact on the whole business. It was also having a serious emotional and financial impact on John's life too; as he needed to take time off work to care for Alison.
We asked Alison why she had not made contact with us to explore any possible avenues of claim on her insurance policies. She said that during this tough time of treatment and feeling unwell she had not been thinking clearly and it simply did not occur to her that she could possibly make a successful claim on her policies.
Alison was so thankful that we had contacted her for the annual review, saying that our support and advice: “...took the weight of worry off my shoulders.”
We submitted and managed claims on both her Trauma and Income Protection insurances policies. Alison's claims were paid. Firstly, she received a Trauma lump sum benefit payment and secondly, monthly benefit payments to replace her lost income.
These funds enabled Alison and John to reduce their level of debt and relieve the pressure of servicing repayments. It enabled them the time to step away from their work to recover, rehabilitate and re-evaluate their lives.
The good news is that Alison has now completed all her treatment and has made a full and complete recovery from Breast Cancer. They have adopted their first child, both have returned to work in reduced capacities and that suits their lifestyle, family situation and financial position.
They are so thankful that they followed our advice and implemented their insurance policies, even though they had reservations about the costs.