It won't happen to us...but what if it did?

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:

The unexpected can happen to anyone.

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.

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.

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31 Comments

- - mom94125 said
  - 05 Oct 2017
    1:30 am
very interesting to read other people’s stories. good article

- - mom112217 said
  - 02 Mar 2017
    1:44 pm
Thanks for your article,all great tips!

- - dannsbuild said
  - 22 Sep 2015
    5:30 pm
Great! Good knowledge to know! Thanks for sharing this!

- - mom109463 said
  - 28 Feb 2015
    5:26 pm
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!

- - matildaspice said
  - 10 Jan 2015
    7:59 pm
Great advice, thank you for the article.

- - mom57522 said
  - 31 Aug 2014
    10:44 pm
A life event happened to us. Luckily we were insured however we still had to change our lifestyle.

- - kazh said
  - 23 Aug 2014
    8:15 pm
Scary stories, it’s so easy to take things for granted.

- - ginoula5 said
  - 14 Aug 2014
    2:09 pm
So many choices of insurance available these days, we always review yearly our policy as changes do happen.

- - mle00 said
  - 31 Jul 2014
    11:59 pm
I still think we have toouch insurance for our needs, it’s peace of mind but it certainly costs a lot

- - maureen3 said
  - 30 Jul 2014
    1:25 pm
Thanks for sharing this article

- - hopefullyheidi said
  - 27 Jul 2014
    11:27 am
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.

- - sisterhood27 said
  - 20 Jul 2014
    12:47 pm
Many thanks for the very informative article I will now sit down and sort out all my insurances and finances

- - mrsdew17 said
  - 18 Jul 2014
    7:11 pm
Great advice about how easy it is to overlook these types of insurance. Thanks for the reminder.

- - trishoet said
  - 16 Jul 2014
    5:20 pm
Definitely need to talk to my partner about this and make a bulletproof plan that will protect us all

- - cairnsbliss said
  - 14 Jul 2014
    2:03 pm
I always worry about the unexpected. I need to talk to my hubby about this.

- - mouse said
  - 13 Jul 2014
    10:33 am
a very worthwhile and interesting read

- - robyn_smithwick said
  - 12 Jul 2014
    12:18 am
This is a very good article.
- Katerina Sousalis replied
  
  15 Jul 2014 , 12:34 pm
  Hi Robin! Thanks for the kind words You can find more interesting articles to read on our website at http://www.modoras.com
- - damish70 said
  - 11 Jul 2014
    11:34 am
I think you do need to prepare yourself for the worse. We have income & life insurance.
- Katerina Sousalis replied
  
  15 Jul 2014 , 12:36 pm
  Absolutely agree! Being covered by insurance is always better than facing the unexpected without any preparation / back up or insurance to protect you.
- - broke said
  - 11 Jul 2014
    8:47 am
totally agree we have all of these insurance in place although they are very expensive

- - rachkap said
  - 11 Jul 2014
    1:53 am
Thanks it is always important to have a back up plan