David Dean is a partner of a small legal firm. David’s in his mid-30’s and has a wife and two small children. While out cycling one weekend, he was accidentally knocked off his bike and suffered a major spinal injury. David was told he would be in-rehabilitation for 12months and it was unknown for how long David might not be able to work for. The Dean’s recently had their second child and in doing so had moved into a bigger home and had increased their debt to the bank.
David hadn’t considered personal insurance before moving into the new house and although he opted not to take up any lump-sum covers, David luckily had entered into an income protection policy to maintain a level of income in the event he suffered injury or illness. David claimed on his income protection 30 days after having the accident, if David can never return to work based on his monthly benefit of $3,125, and given David’s age of 35 at the time of the accident, his potential benefit from his income protection to age 65 would be $1,695,707. Income protection is a must.