Fali Mistry
Many clients feel that they are healthy and refrain from availing insurances thinking that nothing will happen to them.
In fact, they are taking chances/risk, which could be very detrimental to their own interests.
Below is a true story of our very young client called Pooja (not her real name).
Redundancy Cover
A few months back, Pooja approached me saying that she was worried, due to top management change in her company. She feared that she would be made redundant by way of restructure.
She wanted to avail an Insurance Cover, which could protect her immediate household expenses like, rent, power, utilities, school fees etc. in an event of redundancy.
I informed Pooja that generally a Redundancy Cover has a six-month stand-down period from date of issue of the Cover, about which she was not happy.
She wanted a cover that could kick in immediately.
Disability Insurance
To fulfil her needs, I provided her an option wherein she could be covered towards Disability as well as Redundancy immediately upon issue of her policy.
About two or three months after availing this benefit, Pooja’s husband informed me that there was a bad news as she had a fall from an escalator, while returning home from her office Christmas Party. The accident had left her severely injured on her right side and lost the sensation in the lower right side of the body.
Pooja was confined to bed for nearly a month in the hospital.
She still needs neuro-physiotherapy to help her overcome her disability.
Recuperation Period
Though she has been discharged from the hospital, she is still unable to walk or do things on her own. It would take nearly six to eight months for Pooja to recover from her current condition.
I was quite relieved that I had provided Pooja with the right product of covering her disability along with her redundancy benefit, which she never claimed.
One has to understand that if people are made redundant, they will suffer from a temporary financial loss.
But if one becomes disabled, the financial consequences will be enormous.
Pooja and her family need not worry, as she is covered for her disability up to the age of 70. This benefit is also a top up on the ACC benefit that she receives and does not offset the ACC claim.
One has to understand that ACC is 80% of your income and is liable to tax.
It has been rightly said, “A good broker is the best insurance you can have.”
Fali Mistry is a Registered Financial Adviser at Mazda Financial Services Limited based in Auckland. He is a Member of the Institute of Financial Advisers. Phone: 0508-467872; (09) 6255060; Mobile: 021-426858; Email: fali@insuresecure.co.nz; Website: www.insuresecure.co.nz
The above article are the experiences and views of the author and do not reflect the views of Indian Newslink. Readers should seek decide on their insurance policies suitable to them and/or seek appropriate professional advice.
