Life Insurance that You May Not Know You Had
A few years ago, a fellow adviser with good links to health providers was referred a client in his mid-thirties who had experienced a brain tumour and corrective surgery. The client had gone to see a psychologist, and in the course of his counselling, it was revealed that the client was in dire financial straits. He could not hold down a job (the treatment had left him with what was later diagnosed as an acquired brain injury, or ABI), and his new wife was pregnant with twins. His ABI meant that he found it difficult to organise help for himself, so his psychologist agreed to accompany him to a meeting with a financial adviser.
As it turned out, prior to the tumour this client had worked in various labouring roles. These roles necessitated super guarantee contributions into several funds. All of these funds had default level TPD insurance, and to cut a long story short, this client was entitled to a total of $125,000 in insurance payments.
Can you imagine the relief for him and his young wife when they realised that cheques for that amount were on their way?
The client was referred to his bulk billing psychologist by his bulk billing GP. What a fortuitous referral that turned out to be! And well-played to the psychologist for his financial savvy. The client thought he was getting help with his depression. He was, too: $125,000 was the best anti-depressant he ever received.
The same adviser took great pleasure in helping another client who was referred by a medical doctor. This client has a son who had died in a car accident. There was nothing the adviser could do to take that pain away. But he could assist his client to realise that his son had a default life insurance policy worth $200,000. The payment went to his next of kin (in this case, his dad), who put it aside for later use. And the use to which he put the money? Buying the safest car he could find when each of his remaining children turned 18. Some small comfort out of a horrible situation.
These were cases where the client had default cover within a super fund. We also listened intently recently as a fellow adviser told us about a client of his for whom he fought a five year battle to have their claim for TPD accepted. In this case, the client ended up with a seven-figure payment. Which is exactly as it should be – after all, she had paid her premiums for many years.
This is one of the best parts of a financial adviser’s job: helping people make a claim and seeing their relief when the insurance that they have paid for comes to fruition. So, if you or someone you know may have a reason to make a claim on their life insurance policy, why not make contact with us and let us see if we can help them?
