When it comes to income protection, there’s no shortage of misconceptions around what income protection actually covers, and how far reaching this cover can be. Some people think that income protection only covers injuries and has limited value for those in low risk occupations. The reality is that it also covers illness, which makes up 40% of claims.*
Furthermore, it’s not only illnesses with obvious physical effects that are covered. Mental illness is responsible for many claims and is by no means uncommon in our community; one in five Australians will experience a mental illness at some stage in their lives.** Many Australians are equally unaware of the variety of ways income protection can assist, through supplementary benefits and support beyond the basic income stream. The following real life story dramatically illustrates the value of quality income protection insurance.
How Simon’s story unfolded
When his best friend committed suicide, Simon never expected that he’d be so impacted. In the three months following the tragedy, Simon developed a debilitating post traumatic stress disorder resulting in clinical depression and time off work. Fortunately, some years earlier Simon had purchased income protection policy, which proved to be a valuable lifeline.
Recovery sometimes needs more than just income replacement
Simon’s income protection paid him a regular income, which helped replace lost wages. The Insurer also offered a rehabilitation benefit, assigning Simon a rehab adviser. He began by developing a management plan and working with Simon’s GP to identify appropriate courses of therapy. The rehabilitation adviser also kept in email contact with Simon’s wife, encouraging her to attend Simon’s therapy sessions. With Simon unable to return to his own occupation, the rehab adviser engaged a specialist – paid for by the Insurer – to retrain Simon for the building industry. Simon progressed well and was able to secure his first building job.
A twist in the tale
Long working hours, less family time and medical support took its toll; Simon suffered a relapse. The rehabilitation adviser once again became involved and even organised a personal trainer to help Simon lose weight and to improve his general well-being. Simon persevered,recovered and was able to recommence work, this time with more on-the-job training and support. Despite the fact that he was working full time, the insurer continued paying partial income support, due to his wages being less than what they were prior to his disability. Simon’s story demonstrates the value of quality income protection insurance that goes beyond a simple income stream; insurance that provides holistic support for the complexities that illness can bring.
* Based on claims received within FYE 2009 by Asteron Life Limited ABN 64 001 698 228, AFS Licence No 237903, which is part of the Suncorp Group.
** www.health.vic.gov.au/mentalhealth/illnesses/facts.htm
Source: Asteron
