Sarah and Daniel have been together since meeting at their university gig night. After years of dating, they got married, spent a few years travelling and working abroad before finally coming back to their lives, careers and a new puppy. A couple of years later, Sarah gave birth to their beautiful baby girl and not long after, they all posed for a photo outside their first family home.
After taking some time off to spend with his new family, Daniel went back to the office in the city, to keep the family financially afloat and to continue paying off the mortgage on the home they both loved.
Daniel was working late in the office one evening and realised he was running late for a dinner party they were hosting, so he headed home. As he left the office and crossed the road, he was hit by a speeding car coming around the corner, without its lights on. Needless to say, Daniel didn’t make the dinner party.
Although lucky to be alive, Daniel suffered some serious head injuries, resulting in losing some cognitive ability making everyday tasks a challenge. It looked like he was on a long and painful road to recovery, but in the meantime, he couldn’t work.
With a family to support, a mortgage, food to put on the table and medical costs to cover, who was going to pay the bills without Daniels stable income?
To keep the family afloat, Sarah had to come back from maternity leave early and put their daughter into childcare. Sarah’s income only just covered their basic living costs after the childcare and it meant they quickly fell behind on their mortgage repayments. After a few months, things took a turn for the worst and it looked like they might lose their beautiful home and have to move in with Sarah’s elderly parents.
The saddest part of this story; a lot of the financial pain the family experienced after the incident could have been avoided if Daniel had the appropriate insurance advice.
This could have meant that after the accident, they would have potentially received financial support which would be enough to cover up to 75% of Daniels income. Which was enough to cover their living expenses, mortgage and have a little bit left over for holidays.
This is the insurance advice that comes too late. The moment you have to check if you are covered or not, then you are risking too much. If Daniel had Income Protection or even Trauma cover, they could make ends meet financially. If not, can you imagine what they do next?
Life can happen to anyone at anytime, so let’s protect you and your loved ones today. Get in touch today, so we can discuss what insurance advice is appropriate for you.
General Advice Disclaimer
This blog contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or product decision. InterPrac Financial Planning Pty Ltd and its authorised representatives do not accept any liability for any errors or omissions of information supplied in this document except for liability under statute which cannot be excluded.