As many of my clients know, I recently went over my handle bars during a charity bike ride around the leafy North Shore suburbs. The impact it had on my business, my wife and my ability to sustain our lifestyle, was huge event in our lives.
As Managing Partner at CABEL Partners I wanted to share the emotional and financial experience my wife Cathy and I went through so you might be aware of the impact an accident or disability could have on your life.
When many of us think of Income Protection Insurance, our focus is often on the financial cost to our back pocket, the monthly premium that will lower our available funds for life’s every day expenses.
On the 24th March 2014 I took part in the Charity bicycle race the Bobbin Classic. I had been cycling a lot, including a fantastic trip to France while the Tour de France was on, organised by my lovely wife. I love cycling and I used to do it regularly to keep fit. During the race, my back wheel was clipped and I went over the handle bars sustaining several injuries, one, life threatening. I was in hospital for 2 months, and at home recuperating for 4 weeks with daily visits to hospital or from the hospital’s nurses.
I was unable to work. For over 3 months I was not entitled to an income from my business. If I had not had income protection insurance Cathy would have suffered stress, worry and emotional turmoil, from not only having me in hospital, but because we would have had no income to deal with every day expenses.
For Cathy, it gave her a level of comfort knowing that we were going to have an income each month. It took away an element of worry for her from both a personal perspective and also from a business perspective. Cathy knew that the firm wouldn’t have to continue to pay me a wage. She was covered.
We were lucky in that we had a very good policy that covered me for every day while I was in hospital. There was no waiting period where this was the case.
I was also comforted by the fact that the firm could spend additional resources to assist them in my absence, without having to double up on the salary. It allowed me to feel secure, reduce financial worry and hassles, and let me focus on getting better, a very big job in itself.
Practically I was able to continue to contribute a monthly amount to super and I didn’t have to pay the income protection premium while being paid the claim amount.
I have had income protection for the majority of my married life. I took it out when I was about 33, made a claim when I was 40, and now another at 59. During my earlier claim my expenses were different again, I had two daughters at private schools, and it allowed Cathy and I to keep them there with minimal disruption.
Another advantage of the policy, was that it paid a pro-rata amount as I gradually increased my hours back at work.
On 10th March 2015, Jessica Waller, of CABEL Financial will be discussing different types of Income Protection Insurance. She has undertaken extensive research, including a comparison between a budget online insurer, an industry superannuation fund and CABEL Financial’s recommended policy. I strongly suggest you attend this seminar to listen to Jessica, as I cannot recommend highly enough the emotional and financial benefit of having the right policy to protect your lifestyle.
Jessica Waller - Financial Planning Partner - Bachelor of Economics and an Advanced Diploma in Financial Services and is an accredited Self Managed Super Fund specialist
Jessica Waller, Financial Planning Partner has been involved in the provision of financial advice since 2007. Jessica maintains a high level of enthusiasm about providing the right financial advice and is passionate about helping her clients achieve what is important to them. She is highly skilled in the areas of superannuation and personal protection planning and works closely with her diverse client base to assist them in building wealth and achieving their goals.
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