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A recent client conversation

I was speaking to one of my clients today who is unable to work as she is undergoing chemotherapy for breast cancer. Naturally this is an emotionally very stressful time not to say physically draining.

Thankfully my client accepted my advice and implemented some Income Protection last year. She is currently receiving a monthly benefit which is helping to ease the financial strain of not being able to work, especially as she is self employed.

She told me about another patient she met who was in a similar situation to herself  however this lady was stressing about how she was going to meet the mortgage repayments as she is not currently receiving an income and never implemented any Income Protection or Trauma Cover. She told my client that she and her husband had discussed implementing cover for herself but had never got around to it.

The harsh truth is that we all put off doing things that we know we ought to do now. Don’t let insuring your ability to earn an income, probably the greatest asset that any of us has, be one of those things. It’s not hard to do and premiums can be tax deductible.

Trauma Cover is also a vital form of cover. It pays out a lump sum for certain specific critical illnesses such as most forms of malignant cancer, heart attack or stroke. Whereas Income Protection is assessed on the life insured’s ability to work, Trauma Cover will pay a lump sum if the life insured meets a critical illness defintion as detailed in the relevant insurance contract, regardless of their ability to work. The cover pays nominated sufficient lump sum which can help pay off any outstanding medical bills and allow the life insured time to recuperate until they feel they are ready to go back to work.

This entry was posted on Wednesday, May 12th, 2010 at 5:48 am and is filed under Income Protection Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “A recent client conversation”

  1. Another category of people who might want life insurance are business owners or people with substantial estates. Since these people have needs that require more planning, they should usually consult with professionals or specialists in insurance-related law, accounting or estate planning because legal business agreements or trust documents may need to be dran-up.

  2. adam says:

    As an insurance adviser I will always try and involove my clients’ estate planners especially where there is a lack of estate planning or this hasn’t been reviewed recently. If they don’t have an estate planner I will try and put them in touch with a suitable one. I agree that it is also vital to work closely with a client’s accountant and a suitably qualified solicitor in areas such as business succession planning where there may be a need to draw up succession agreements and to accurately value a particular business.


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