Case study

Scott and Natalie

Scott and Natalie were in their mid-twenties when they met about three years ago whilst working for the same company. At the time Natalie was still living at home with her parents but after two years of being together Scott and Natalie decided to take the next step in their relationship and purchase a home together.

Scott was embarking on his career path in marketing and had just received a promotion at work that came with a large salary increase. Natalie was also progressing well in her role as a communications manager. Together, they pooled their combined income of $130,000 and their savings and purchased a small unit.

It was an exciting time full of little surprises - a new chapter in their relationship. They furnished the unit, they cleared the back yard and over a period of a few weeks they had made their new unit the home they had always planned together. Scott and Natalie considered themselves to be financially stable, earning good incomes and enjoying a relatively comfortable lifestyle.

Scott and Natalie had discussed taking out personal insurance with Natalie’s father at the same time that they were purchasing their unit but the mortgage represented a large proportion of their income and paying the mortgage dominated their household spending. Insurance for the time being was just another expense and for the time being any thoughts about purchasing cover were put to one side.

However, one day their plans together came to an abrupt halt, Natalie had travelled to visit her mother who was unwell and in hospital for some tests.Tragically after this visit Natalie had been involved in a car accident. Natalie received extensive head injuries and was on life support for several days before she lost her fight for life and died. Scott was devastated and as a result he suffered severe depression that meant he was unable to continue working for several months. His sick leave had run out and financially things were becoming difficult. Making the mortgage repayments each month, without an income and on his own, became a struggle and another emotional worry.

Eventually Scott decided he had to sell the unit and as he still wasn’t working he moved back to live with his parents. He was depending heavily on the support of family and friends and all the plans he had made when Natalie was alive weren’t to be.

There is nothing we can do about the emotional side of losing a loved one. Yet, we can assist with alleviating the financial impact of such tragedies by providing personal insurance options so that in the event that the unexpected occurs, your loved ones are financially secure.

What could they have done differently?

Scott may not have faced this financial crisis if they had both had a personal insurance plan. This could include:
  • Income Protection Insurance: This insurance cover would have replaced 75% of Scott’s income after Natalie’s accident and would pay as long as he was unable to work, or supplement his income when working part-time.
  • Critical Illness cover: This insurance cover would have assisted with debt repayments such as their mortgage and with the cost of additional medical treatments and any time needed off work.
  • Permanently Unable to Work cover: This insurance cover would have helped if either of them had been permanently disabled and would have helped extinguish debt and maintain their lifestyles and financial independence.
  • Life cover: This insurance cover would have helped Scott to pay any debts (mortgage, personal, credit card etc) upon diagnosis of a terminal illness or Natalie’s death.

Planning for your future is important and with Allianz it’s now quick, easy and affordable. Above all, it will provide peace of mind and a level of security should the unexpected happen.

Important note:
The insurance is issued by Allianz Australia Life Insurance Limited ABN 27 076 033 782, AFSL 296559. The information contained on this website is general information only. It does not take into account your individual objectives or financial situation. You should therefore consider the appropriateness of the insurance having regard to your objectives, financial situation and needs. Prior to making any decision you should read the PDF Download Allianz Life Plan Product Disclosure Statement and Policy Document (PDS). You should seek advice from your financial adviser before deciding on appropriate insurance cover.

This is a fictional event

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