Financial Advice Case Study

If you are seeking financial advice from us, the following case will help you understand how our financial advice will help you to achieve your financial goals. The case is about an insurance claim by one of our clients, a doctor who faced a financial distress at some point of life.

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Case Study

Doctor X is a General Practitioner with a special interest in the diagnosis and treatment of skin cancer. She is a successful doctor and a mother of two who has always been busy and had an active lifestyle. Just after her 44th birthday she noticed a sudden change with her urination. Understanding the symptoms, which seemingly got worse with time she was concerned, Dr X eventually underwent tests and her greatest fears were confirmed as results came back positive to Hepatitis.

While she has been diagnosed with Hepatitis C, she could only manage a patient workload of one day-a-week, a reduction from five days a week.Doctor X stops performing exposure-prone procedures. This includes minor surgery, which is one of her key income producing duties. As a result, Doctor X has a more than 80% reduction in her ability to earn an income.

As her income has reduced significantly, Doctor X becomes eligible for total disability payments. If Doctor X continues to work in an alternative capacity, which does not involve exposure prone procedures but results in a lesser income, she will be eligible for a partial disability payment.She made a call to her advisor to discuss a claim on her cover.

She has been seeing our financial advisor and has received a comprehensive insurance strategy specifically for his profession which included an Income Protection and Needlestick Benefit. According to the diagnosis reports, Doctor X was infected with Hepatitis through a needle-stick injury during minor surgery.

Her Income Protection policy has a waiting period of 30 days and her monthly benefit under that policy is $10,000 per month. Her Income Protection covers both total and partial disability. Her waiting period started when she first consulted a medical practitioner about her sickness which caused the disability and she was certified as partially disabled.

Doctor X qualifies for the ‘Needlestick Benefit’ and will receive a tax-free lump sum payment, in addition to his monthly Income Protection benefit whilst she remains off work. For 30 day waiting period, she may return to work at full capacity for up to five consecutive days during the waiting period without having to start the waiting period again.

With the assistance of our financial advisor she lodged her claim. Insurance provider assessed her claim and a payment was made within 48 hours.

What’s to be learned here?

  1. It is important for a professional to disclose occupational hazards very clear to the financial adviser.
  2. Complacency of current cash flows should not lead to avoiding risk insurance.
  3. Advisers must be totally involved in the process of selecting appropriate insurance cover and benefits according to the client’s occupational needs.
  4. Advisers must clearly convey the provisions of the particular policy to the client.
  5. Clients must inform the Adviser immediately of any diagnosed sickness or disability.
  6. Clients should recognize that insurers can always make mistakes in the calculation of claims, hence need to involve the Adviser in the process.

 

Contact us today to sort out the proper insurance cover for you.

 

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