Counting on your insurance policy when bad times hit

You may know the story of well known Kiwi builder Cocksy getting married recently despite being terminally ill and having limited time on earth.

This got me thinking on some of my clients going on claim. I won’t mention any names but I will describe who they are in terms of gender, age, medical condition and how valuable their insurance has been to them.

Real-life cases

  • Male in his early 50s diagnosed with a chronic liver condition about 3 years ago. Initially, he was on income protection of $4000 per month but just recently his cardiologist and liver specialist considered that his condition was deteriorating and he had possibly 12 months to live. The terminal illness payout was $1.2m which was useful in paying off the mortgage and providing greater financial security and removing anxiety and worry around money and lack of it. He is also entitled to financial planning assistance of $2,500.

  • Female in her 40s was diagnosed with a cancerous lump behind her eye which would eventually take away her sight from that eye. She worked as a high-flying financial controller who was still able to maintain her busy workload. However, she received $200,000 which was gratefully appreciated.

  • Male in his 40s was diagnosed with prostate cancer and he received a lump sum to assist him financially and help him with treatment.

  • Female in her early 40s was diagnosed with depression. She was self-employed, with young children less than 10 and a busy husband. She thought she was bullet-proof with a massive juggling act and she was on claim for income protection for about a year. She has since made a full recovery but is no longer self-employed.

  • Female in her mid-30s was diagnosed with a cancerous tumor on her back. She received a public hospital cash grant of $3000 for being in a public hospital and having private health insurance. She also received $100,000 critical conditions cover for the diagnosed condition. The money was put on to the mortgage to reduce the interest and ease the financial strain.

  • Female in her 40s broke her wrist in a fall which prevented her from performing her normal occupational duties. A combination of ACC loss of earnings and income protection without ACC offsets made her time away from work financially easier.

  • Male in his 50s had a terrible motorcycle accident. He was self-employed and had a combination of ACC loss of earnings and business overheads cover. It meant his rent could be paid while he was unable to work along with other non-income generating business overheads. In fact, he has claimed on two separate occasions and they were both motorcycle accidents in a competitive environment.

  • Female in her 40s became depressed as a combination of working ungodly hour shifts and dependent children and workplace harassment. She received income protection for more than a year.

  • Female in her 40s became diagnosed with muscular pains which prevented her from working. She was on income protection for about 8 months which certainly eased her financial situation.

  • Female early 40s became diagnosed with heart issues and she was unable to work for 4 months and in that time she received $12,000 from her income protection plan.

  • Male in his early 30s who was an agricultural contractor was recommended to take 3 months off as he had become ill with a viral condition. He was hospitalized having experienced extraordinary fatigue, hot sweats and lack of concentration. He had a business overheads insurance plan which covered essential business expenses while he was off work.

  • Female in her early 50s was diagnosed with a brain aneurysm and received $100,000 from her trauma policy which was used to reduce debt.Female in her 50s required a heart pacemaker. She had severity based trauma and she received 25% of her sum assured

  • Male in his 40s claimed $430,000 as a result of a serious accident which prevented him from working again in his own occupation. He required a neck and spinal fusion.

  • Female in her 50s lost her peripheral vision and she was described as being legally blind by the Blind Foundation. She received a significant payout on her trauma policy.

  • Male in his early 50s was diagnosed with gastro-oesophageal cancer. As a result, he got wonderful healthcare from Mercy Hospital (through his private health cover), a lump sum for the trauma, income protection, and life insurance. He died 14 months after his diagnosis.

  • Female in her late 50s was diagnosed with melanoma and received a lump sum of $50,000.

  • Female in her 30s got very bad dermatitis particularly on her face and has been on income protection for more than 2 years.

Get the right insurance advice

These are 18 relatively recent claimants where their insurance did not cure their medical condition but it did provide money when it was needed most. I have not mentioned the countless health insurance claims. I reckon one person in 25 has submitted a claim over the last 5 years as far as my client base is concerned.

We like to think we are all indestructible. That our insurance policies are just a piece of paper and will never really be of much use, surely we are all immortal?

Fortunately for some, when bad times do hit they are covered and are able to find solace in either a health claim or a claim offering financial aid. When it comes to claiming on your insurance policy this is where the role of an adviser really comes to light. In comparison with insurance done online or directly through a provider, you are guaranteed to have assistance. Throughout the entire claims process. This eases the pressure on the claimant and ensures things are done correctly and efficiently to help you get the desired outcome.

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