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.