Case Study – Michael

September 28, 2015

It seemed to be a day like any other. A busy senior partner in a successful accounting firm, Michael, 45 years of age, thought he was in pretty good shape. However, in May 1994 he suffered a serious stroke.

He claimed on his Income Protection Insurance and after five days he received money from the insurer They paid out on the Bed Confinement/Hospitalisation benefit. He received $1,500 for the total time he spent in hospital.

Michael, having selected a 13 week waiting period, received approximately $3,800 per month from September 1994.

After his fight for survival the last thing he needed to worry about was how the bills were to be paid. The insurer settled the claim quickly, helping Michael get back on his feet. After only three months of receiving the full monthly Income Protection Insurance payment Michael was able to get himself ‘up and running’, taking on non-strenuous tasks and working 20 hours per week. His salary was still topped up by a Partial Disability Income benefit of $2,700 per month.

Case Study – John

September 28, 2015

John, 49 years old, was a company director of a jewellery manufacturing business he owned. While on business in Perth, Australia in February of 1995, John suffered a right-sided stroke and has since been unable to work. At this early stage it seems he may never return to full employment. His income, as confirmed by his accountant, was $70,000 per annum.

Although he would normally have had to wait four weeks before receiving the first benefit payment, because he was confined to bed John qualified after only three days for a payment under the Bed Confinement/Hospitalisation benefit.

John currently receives an inflation-adjusted Income Protection payment of $55,106 per annum, by direct credit on a monthly basis.

Case Study – Dave

September 28, 2015

Dave started his own business in 1995 working as an auto glazier, having had 14 years experience in the industry. In September of 1996, at the age of 30, he suffered a lower back injury which put him out of work.

Dave’s Disability Income Cover meant he was entitled to an agreed value benefit of $2,000 per month, after a four week waiting period. Dave was paid $1,374.22 per month, which is the agreed value benefit less the payments he received from ACC. However, in June of 1997 his ACC payments ceased, so his income protection payments increased to $2,025 per month. Dave’s injury was such that he will not be able to work as an auto glazier again.

He has, however, commenced a computer course at the Bay of Plenty Polytech. For this, the insurer paid the course fees of $2,445 pursuant to the Retraining benefit.