income-insurance-case-studyImagine being 52 years old and suffering from a heart attack or other cardiac condition that renders you unable to work. These sorts of events happen every day. If you live in a city, then chances are that you have heard the sirens of the fire department or ambulance taking someone to a medical center.

Martha was 52 when she was admitted to the hospital with sever chest pain. Extensive tests showed that she had suffered a mild heart attack that damage 5% of her hearts muscle including one of the valves in her atrium (upper chamber of her heart.) Martha underwent surgery to replace her damaged heart valve.

The surgery involved splitting her sternum open to allow the surgeons access to her heart. The recovery time was 3-6 weeks, but Martha suffered various set backs including a nosocomial infect (caught from the hospital.) Her recovery time from her heart attack was 14 months long. This is significantly longer than her 3-6 week recovery period.

Fortunately for Martha she had purchased an income protection plan. During her 14 months spent recovering from heart surgery, her income protection plan was depositing regular monthly payments into her checking account.

Outside of her medical worries, Martha’s normal life was peaking. Her youngest child had just left for college, her and her husband had just celebrated their 30th wedding anniversary. Because Martha had purchased income protection insurance, she did not have to worry about cash flow, finances, or her mortgage. She simply gained the freedom just to focus on her recuperation.

Martha’s income protection plan paid her 75% of her annual gross salary, each month that she was unable to work. Even after, she had returned to work, she was only allowed to work part time and the policy that she chose covered partial disability.

Because she had income protection, she was able to continue to pay her mortgage, help her child go to college, and still meet her financial obligations. That is what income protection is supposed to do. It is there to allow you the financial freedom to focus on your recovery from your injury or illness. Fortunately Martha was able to recover fully, and while this was a life changing event for her, it has had a positive impact on her life. She was able to survive a small heart attack which may prevent a larger heart attack from occurring later.

If the prognosis for Martha were not as good and her heart attack had left her permanently disabled, she would have been eligible to receive a monthly payment from her income protection policy for the next 13 years. She would then have reached the age of 65 and qualified for retirement.

If Martha had not had income protection, she would have lost out on all of those years of salary. Her financial outlook would have been remarkably different. Fortunately for her and her family, she thought ahead and was able to prepare for the unknown.

Income protection insurance is one of the most misunderstood of all insurance policies. It is as important as carrying health insurance because income protection looks after your financial health when you are no longer able to work because of an injury or illness. Today’s medical care is advanced, and recovery time takes longer. Thirty years ago Martha’s heart attack my have been deadly, but today, medical treatment saves a great deal more lives than it once did.

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