Right Foot Forward

 In Finances, Health, Insurance

It was late 2015 that Grant and I met to review his financial affairs; how was his super, was there an adequate level of personal insurances and was he striking his targets to meet his financial goals.

At the time he only held Life cover and Total and Permanent Disablement cover. Grant thought this was sufficient as his family and assets would be protected if he passed away or had an accident he would receive a lump sum payment. Being a State Sales Manager was not an occupation that assigned risk or danger and it would be most likely he may still be able to work.

We discussed this further and I provided scenarios for him to assess and consider how he and his family would survive if his income tap was switched off, if he suffered a partial injury or an illness that meant he had to receive treatment and was unable to work for a period.

This kicked-off a detailed discussion about the purposes and benefits of holding personal insurances.

Income protection was the insurance that I highlighted for all that hold a job and receive an income. In simple terms, it is when you receive 75% of your income if you are unable to work due to an illness or injury. The two key components are a waiting period and benefit period, and these can be elected by the client. The benefit period is the amount of time you will receive a monthly benefit if you are unable to work, this can range from 2 years to age 70. The waiting period is the interval for when you would receive the first monthly payment and can be from 14 days to 2 years.

It was in his local shopping centre car park that he had a fall on rickety ground which caused him to fall. With an immediate and severe pain, bruising and swelling he was assisted with help and was taken to a hospital. He was informed he had broken his right ankle, a common injury. He needed to have X-Rays, MRI’s and was placed on a comprehensive treatment plan to get him back on his feet.

Grant contacted me and informed me of his accident and questioned if we could lodge a claim with AMP. I notified AMP and he was sent the paperwork to complete with his doctor/specialists and to provide medical records, results from his MRI’s.

A claim was lodged, and it was a seamless process. Within a six-week period he was receiving a monthly payment of $6,500 which met his discretionary and non-discretionary expenses. He and his family did not feel any financial strain, it was only his ankle that continued with the pain. He also received regular check-ups from AMP claims and had the benefits of an Occupational Therapist.

During this phase another kick-off occurred. His employer had gone into insolvency and he and forty other employees lost their job and he ceased receiving any entitlements.

It took Grant five-months to get back on his feet, now fully recovered and working in a new full-time job which is going well. Also, he and former workmates are now in combat with his ex-employer to attain their outstanding work entitlements, rights.

This is a real-life story that underlines how simple incidents can occur and how we need to have our feet firmly on the ground with a back-up plan.

Personal insurances don’t remove the risk of something going wrong, but it provides you and your family with protection and financial security if something does happen.


Written by Brad Smith, Senior Financial Planner on behalf of Oak Financial Planning.

Brad has over 15 years experience within the financial planning industry.

Brad also has a strong passion for financial literacy, and was the creator of a successful financial literacy program within a large financial institution. 

Through the success of the program, employees were able to benefit by being further educated, empowered and enhanced in their financial wellbeing.


Oak Financial Planning Pty Ltd ABN 78 126 751 335, trading as Oak Financial Planning is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licence and Australian Credit Licence 232706.

This blog article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

If you decide to purchase or vary a financial product, Brad Smith, Oak Financial Planning Pty Ltd and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

Recent Posts