Ashley’s Story

Ashley’s Story

Professional services provider Ashley was employed by a small but growing advisory services company in a senior role.

Ashley and his partner had recently acquired an investment property against which a mortgage debt had been raised. He consulted a Continuum Financial Planners Pty Ltd adviser and agreed that any interruption to his earning ability would prove difficult both for the payment of his mortgage obligations; and for his family. As a consequence he took out an Income Protection Policy that would provide him 75% of his income in the event of a ‘qualifying event’.

Two years later, Ashley suffered a stroke whilst exercising and was incapacitated to an extent that he couldn’t make a speedy return to work. As he had not been employed by his company for any lengthy time, he had minimal leave entitlements available.

Ashley’s policy provided for benefits to be paid through to his 65th birthday after a 30-day ‘waiting period’.

Whilst his partner is still required to continue to earn a living, the financial pressure is relieved by the monthly cheque that is received as a result of having taken this insurance. Ashley is now concentrating on making a sufficient recovery to be able to become less financially dependant on his insurance payments – and in the meantime, his mortgage is being paid, his partner can work effectively with the peace of mind that they are financially OK; and their rental income continues uninterrupted.

[Although the name has been changed, the above story is based on an actual claim experience.]
By | 2016-12-14T12:03:52+00:00 September 18, 2010|Risk Insurance Strategies, Wealth Management|0 Comments

About the Author:

After 28 years as an accountant in public practice Eric commenced his work in the financial planning industry in October 2000. During his career, Eric has advised clients on a wide range of financial and general investment matters, whilst providing strategic business services to entrepreneurs and senior managers.

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