Ruvini is a local GP with 10 years experience. She is married and has a 3 year old son. She typically earns around $200,000 per year. Ruvini and her husband meet with Financial Planner Paul Benson to discuss their personal insurance needs. Paul provides recommendations to them,
and they decide to implement:
• Income Protection cover for 75% of Ruvini’s income to ensure that if she were to be unable to work for a period of time, the bulk of her normal income would continue to come into the household, so that as a family they would not be put under financial strain. The policy covers Ruvini through to age 70, so should she suffer an injury or illness that prevented her returning to work, she knows their long term financial outlook remains robust. The policy is structured so as to be tax deductible to Ruvini, making it very cost effective.
• Life and Total and Permanent Disability insurance through Ruvini’s superannuation fund, sufficient to clear their mortgage, and provide an additional $500,000 to assist with the raising of their son.
• A Trauma policy for $100,000 is also arranged, so that if Ruvini suffered
a serious medical condition such as Ovarian Cancer, she would receive a rapid cash injection into the household to take any financial pressures off, and ensure she can focus entirely on her recovery.
With this personal insurance package implemented, Ruvini and her husband gain considerable peace of mind. They know that should Ruvini suffer a serious injury or illness, or in the worst case pass away, there is a financial safety net in place to ensure their family is looked after.