You don’t need insurance until you do

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You might remember that last month one of my tips for what to do with your money during the Covid-19 crisis was NOT to cancel your insurance (if you want to re-read that blog, click here). Well, this month I wanted to reiterate that message by sharing just how close one of my clients came to making this mistake.

The client (we’ll call her Jane) was a woman in her fifties who had held cover for quite some time. However, as happens when we age, her trauma premiums were increasing and she was thinking about cancelling this cover.

In addition, my client’s rent and living expenses were going up, but her salary was stagnant and the company she worked for was cutting back on bonus payments. Jane told me she was really struggling to make ends meet and wanted to cancel her trauma cover.

I cautioned her against doing this, but she was adamant. She left our meeting resolved to cancel the cover.

About a month later, Jane was diagnosed with lung cancer. The illness came as a complete surprise to Jane and her husband, especially because Jane was a non-smoker. It really was a case of: “I thought it would never happen to me”.

She called me to tell me about the diagnosis and that she was due to go into surgery within 48 hours. Jane was desperately worried about whether she would make it through the operation, as well as how she and her husband were going to fund the procedure. Everything was happening so fast!

Luckily for Jane, although she’d planned to cancel her trauma cover, she had not quite got around to doing it. Her procrastination meant she was still eligible to make a claim.

I immediately went into action, helping her complete the necessary paperwork from the insurer and confirming what reports were needed from the doctor. The claim was lodged the next day, and within 24 hours the claim had been approved. The money was in the bank on the day of the surgery.

I am pleased to say that Jane’s procedure was a success and she has been in remission for a number of years. After the initial rush into hospital, while she was at home recovering, Jane told me the immense relief she and her husband felt at having the money-worries taken care of.

“When you are going through cancer you are pulled from pillar to post, from doctor to surgeon to specialist,” Jane told me. “It is all quite overwhelming dealing with the doctors, let alone the diagnosis, let alone insurance paperwork.” Jane said that it wasn’t just the relief of knowing she still had the cover in place to pay for the treatment, but it was also knowing she had me to take care of all the paperwork and process for her.

The moral of the story is that none of us know what the future will hold. That’s why you have insurance in place – to provide the safety net when something goes wrong. Even something you thought was never going to happen.

If you would like to speak to someone about getting covered, or if you need help to retain your insurance due to financial hardship, please give me a call.

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About the Author:

Tatiana has over 15 years experience within Financial Services with the last 7 years focussed on Life Risk. Tatiana has held Senior roles with a number of organisations such as Macquarie, AMP and OnePath prior to starting Monarch Advisory Group. Tatiana holds an Advanced Diploma of Financial Services and is completing the CFP (Certified Financial Planner) through the FPA (Financial Planning Association). Tatiana is also a member of the FPA, which is the highest professional body for the Financial Planning industry. Tatiana is very approachable and passionate about ensuring her friends, family and clients are properly protected in the unfortunate event that something goes wrong.

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