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We all hope the nasty things won’t happen to us, but what if they did?

These people held the same belief until…

Amanda started her own business providing beauty treatments last year after working for a major company for many years. She loves the freedom and control it gives her. Unfortunately a truck ran into her car while travelling to her next client appointment and she received a severe whiplash injury. She couldn’t work for two months and the loss of income has made life hard for her young family. She didn’t think to arrange income protection insurance to replace the sick leave she had with her ex-employer.

Dean and Layla worked hard to reduce their mortgage and once they had some equity in their home used it to borrow to buy an investment unit. It was being rented and had the potential for long-term capital growth. Sadly, Dean died suddenly from a stroke. On a reduced income Layla couldn’t afford to keep paying the interest on the investment loan. The unit had to be sold quickly at a loss. They did not think to increase Dean’s life insurance when they borrowed for the unit.

Angela is successful in business and prides herself in managing her personal finances well. She has a well-diversified portfolio of property and shares. Last year she contracted breast cancer and her work was disrupted with tests and hospital treatment for over five months. She has now recovered but the medical bills made a severe dent in her finances so she was forced to sell some shares at short notice. Angela did not know that trauma insurance would have paid her a lump sum when she was diagnosed with a critical illness.

Three important lessons can be learned from these cases: 

  1. The unexpected can happen to anyone.
  1. Treat yourself to peace of mind, arrange insurance to protect your family, income and assets and take the time to review your insurance arrangements at least once every year. If there are changes in your circumstances – new job, new loans, family changes, etc – arrange a meeting with your Modoras Planner.
  1. Talk to a Financial Advisor. There are many different choices of insurance and it pays to have a specialist analyse your needs and find the most cost effective solution to protect what’s most important to you.
Modoras Pty Ltd ABN 86068034908 AFS License No. 233209. This article contains general advice information only and is not intended to represent specific personal advice. No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional financial advice before making any financial investment decision.
Image from Shutterstock

  • very interesting to read other people’s stories. good article

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  • Thanks for your article,all great tips!

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  • Great! Good knowledge to know! Thanks for sharing this!

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  • This story is so right, I got sick unexpectedly at 37 and am now 47 and have not been able to work since, I have a fulltime carer and cannot be left alone, I had always worked fulltime and had a successful career, I went to work one day, was in hospital the next and life has never been the same since, fortunately my children were teenagers and are now grown up but I had insurance thru my super and was able to access it, it did take some doing and there were some difficulties but eventually they paid out and it certainly has made a huge difference to our life as although life will never be the same again we do not have financial difficulties, we can live comfortably, do not underestimate insurance, I never thought I would need it. I was healthy!

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  • Great advice, thank you for the article.

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  • A life event happened to us. Luckily we were insured however we still had to change our lifestyle.

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  • Scary stories, it’s so easy to take things for granted.

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  • So many choices of insurance available these days, we always review yearly our policy as changes do happen.

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  • I still think we have toouch insurance for our needs, it’s peace of mind but it certainly costs a lot

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  • Thanks for sharing this article

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  • I held that belief and it caught up with me and changed my life and I’m only just recovering and getting my outlook together to start again. Thanks for your article.

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  • Many thanks for the very informative article I will now sit down and sort out all my insurances and finances

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  • Great advice about how easy it is to overlook these types of insurance. Thanks for the reminder.

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  • Definitely need to talk to my partner about this and make a bulletproof plan that will protect us all

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  • I always worry about the unexpected. I need to talk to my hubby about this.

    Reply

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