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Income protection insurance – Jodene’s story

Posted March 4, 2018 by MoneyLink

Life has a way of surprising us – sometimes with amazing and delightful things, and sometimes with the unexpected.

Jo, a Sydney Mum in her early 40s with two active boys, considered herself pretty healthy. She cycled to work, she ate well, and there was nothing in her health profile to suggest otherwise.

Shock diagnosis

But then one day, Jo began to have pains in her chest. They didn’t go away, and the ensuing diagnosis was a shock for Jo and her family.

Jo discovered that she had heart disease. New robotics surgery was available to her – but irrespective of the excellent prognosis she faced, Jo realised she would have a pretty long road to recovery, which was going to cause a big disruption to her ‘normal’ life.

Thankfully, Jo had income protection insurance, which she and her husband had organised when they first took out their mortgage some years beforehand.

As she says: “It was good to know that we had that insurance in place so that we weren’t worried about the cost of the operation before I went in.”

Eight months later, the operation was a success and Jo is well on the road to recovery. There’s no doubt in her mind that being able to claim on the insurance has made a big difference to her ability to focus on recovery – taking the time she needed to recouperate without worrying about finances.

The point of having any type of insurance is just that – it makes life simple if something unexpected occurs. Like having your home broken into. Or a bingle in the car park.

And the point is especially emphasised when you’re dealing with a health crisis or some other type of life trauma. Income protection insurance means that the bills will still be paid, there will still be food on the table, and a roof over your head. It means that despite the major life event, life can still carry on.

Being under financial pressure at a time of major stress only adds to the torment and anguish. Numerous global scientific studies that have proven that extreme stress affects our ability to recover because of its impact on our body, and because it also lowers our immune system.

Income Protection Insurance

A financial advisor can help you understand the level of income protection you need. There are many factors to consider, and any policy needs to be weighed against the types of cover you may already have in place, including life insurance, or trauma cover as well as your private health insurance.

Income protection insurance is a ‘must-have’ when you’re self-employed, because even though you’re likely to have a component of income protection in your superannuation, it’s generic cover and might not be adequate for your needs.

If you’re employed it’s also worth considering. While some employers are able to offer really generous sick pay and benefits, smaller businesses may only be able to offer you a basic sick leave package, which is unlikely to keep you financially afloat, especially if the recovery process is lengthy. Irrespective of what your employer offers you now, you may not be in the same job, with the same company, at the time.

Life changes – it’s worth being prepared.

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