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This case study revolves around a surgical registrar named Lucy who was going for a fellowship in London. Lucy income was going to be reduced substantially, which meant less than half of what she earned. She owned two investment properties with mortgages on them, but she was concerned about her cash flow. Lucy approached mnm group financial advisor to find out ways to reduce her expenses and improve cash flow, and in the review meeting, they realized that there was a gap in her personal insurance portfolio. The financial advisor suggested trauma and total permanent own occupation disability cover, which she was hesitant to consider, but the advisor explained the importance of personal insurance, and she decided to take it.
Lucy faced several challenges, including a reduced income, mortgages repayment on two properties, and concern regarding cash flow. She was reluctant to take personal insurance, thinking it was an unnecessary expense, and never thought she would need it.
The financial advisor suggested Lucy to take trauma and total permanent own occupation disability cover. He recommended a $200,000 cover for trauma and linked own occupation total permanent disability cover at a price of less than $1,600 p.a.
After the Lucy agreed to take the personal insurance, advisor applied for the policy, which was approved before she left for London.
Five months later, she called the advisor to inform them that she had been diagnosed with breast cancer while in London and left her job immediately to return to Sydney for treatment. She was worried about her cash flow and considered selling her investments to pay for treatment.
The financial advisor paused all her mortgage repayments for 12 months and informed her that she had a lump sum trauma cover of $200,000 and was eligible for claim. Advisor lodged her claim and got her approved monthly income protection benefit and $200,000 of lump sum cover within two weeks, which helped her repay her credit cards debt, medical treatment at a private hospital, and breast reconstruction surgery. As a result Lucy retained her investment properties and received the best treatment available, which allowed her to make a full recovery.
This case study emphasises the need to have difficult conversations with clients, even when they may not agree with you. Lucy’s trust in her financial advisor, who brought her personal insurance gap to light and addressed it, helped her to saved her investment properties, avoid bankruptcy and enabled her to seek the best treatment available for her illness.
Lucy decision to insure trauma proved to be the best financial decision of her life, allowing her to make a full recovery.
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