Case Studies

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Michael’s Story – Stress and Risk Protection

Michael was 39 years old and married. He had his own successful accounting firm with six support staff. In 1993, when he took out a Risk Protection Plan, his adviser recommended he purchase Business Overheads Cover with a two year benefit period.

In June of 1995, the stress of running his business became too much and his GP recommended he take time off work to recover. He ended up being off work for 12 months. As the time he stopped working his income was calculated to be approximately $90,000 per annum. However, his business expenses were $250,000 per annum!

Michael made a claim and two days after he sent them the required medical information, it was accepted. After the four week waiting period, Michael started receiving a monthly Business Overheads benefit of $20,800 to help ensure that bills could be paid and client contact maintained whilst he was away from work. In July of 1996, he returned to work completely refreshed.

David’s Story – Critical illness and Income protection

It seemed to be a day like any other. A busy senior partner in a successful legal firm, David, 45 years of age, thought he was in pretty good shape. However, in December 2010, after some unexplained weight loss, David went to have a check-up with his Doctor. After further tests in January 2011, it was confirmed that David had bowel cancer.

The critical illness policy that David had gave him a lump sum payout of $50,000 and then after his 4 week stand-down his income protection insurance kicked in, giving him an ongoing income of $8,000 per month. As David slowly recovered from the bowel cancer, he was able to start working part time. His income protection insurance continued to provide a partial payment until in November 2011 he was able to return to full time work.

In January 2012 we were in touch with David, advising him he could now take up his Critical Illness Buy-Back option which enabled him to buy back his critical illness insurance once again, at the pre-disability premium. As he had already claimed on this policy, there is an exclusion of the illness claimed, in this case cancer.

John’s Story – Critical Illness Cover

John, a 50 year old lawyer, had his world turned upside down when he was advised by his doctor to undergo quadruple by-pass surgery. A week later he had the heart surgery.

John was well prepared and through his critical illness cover as part of his Risk Protection Plan, received a lump sum benefit of just under $160,000 which assisted his family while he was unable to work. He received his benefit within two days of submitting the required medical information.

The operation was a success and thanks to his Risk Protection Plan, John was able to concentrate on recovering from the surgery.

Kate’s Story – Health insurance with critical illness cover

Kate worked as a legal secretary at an Auckland law firm. In August 2009 she had tests carried out by her doctor as she had not been feeling right for a while. The tests indicated that Kate had ovarian cancer.

Surgery followed, leaving Kate unable to work for six weeks. Kate had critical illness insurance and health insurance as part of her Risk Protection Plan. A claim was made through her financial adviser and she promptly received a lump sum of $100,000. Having access to this lump sum ensured Kate was worry free and able to concentrate on getting well. Her doctor advised her that she would need follow-up chemotherapy and recommended a specialist cocktail of drugs that were more suited to her circumstances.

Her health insurance covered all of her chemotherapy costs and she did not have to wait to begin treatment. Kate is currently in good health and having regular check-ups to ensure that she remains that way!