• AFRM

Claims Case Study:

Originally published on 2 September 2019


“These events can strike at any time, without warning.”
“Having that financial security of the right insurance cover in place gives people options.”
“It allows them to get the treatment they need and adjust their lifestyle according to what they want to do ‒ not what they have to do.”

All too often when clients experience a reduction in income and/or cash flow, insurance cover is seen as the first “luxury” item to be sacrificed.


That was certainly the initial view of Sarah, client of AFRM adviser Dan Musumeci, when she called him in November last year.


Nearing 50 years of age, Sarah, had held a Trauma policy for close to a decade and had never had any reason to call upon it.

On a limited income, single and working to pay off a property in Sydney, she was not at all sure if she could continue to afford to pay her Trauma cover premiums.


After a long conversation in which Dan encouraged Sarah to take a long-term view of her circumstances and to consider every possible set of circumstances that may befall her in the coming years, Sarah ultimately chose to retain her cover.


Fast forward to April 2019 and Sarah called Dan to advise him that she had been diagnosed with breast cancer. Sarah was in a state of shock and was concerned about her continued ability to pay her mortgage if she was going to be forced to take time off work.


Dan assisted Sarah file a claim under her Trauma policy. At the time she had only missed several weeks of work.


Her claim was successful and she was subsequently paid in excess of $230,000 in benefits.


“The money has made a massive difference in Sarah’s life and has allowed her to give herself some breathing space to focus on what is important in life,” Dan said.

When asked what he believed the key learnings to be from this case study, Dan said:

“These events can strike at any time, without warning. Having that financial security of the right insurance cover in place gives people options."
"It allows them to get the treatment they need and adjust their lifestyle according to what they want to do ‒ not what they have to do.”
“It’s about the client understanding the total risk and giving full consideration to what they are prepared to trade off."
"Insurance can often be seen as the first thing to be cut when cash flow gets tight, but people should understand that their financial situation [without insurance] would only get worse if a serious and significant claimable event were to occur.”
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