Case D

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.