Case study: preparing for declining health

Learn how David managed his money to reduce the financial impact of his illness.

David, 50, has been diagnosed with Crohn’s disease. Suddenly facing an uncertain future, he has sought to build his family’s financial security.

Worrying health news

David has just been diagnosed with Crohn's disease. His specialist has told him that the autoimmune condition means that he may soon need to start taking time off work and, in the future, may not be able to work at all. As David earns significantly more than his wife and they have two school-aged children, he wants to provide his family with as much financial security as he can.  

A review of insurance cover 

David has some insurance within his superannuation fund. Upon closer inspection, he realised this insurance only provided an amount in the event of his death and did not offer protection under other circumstances, such as being unable to return to work due to his health.

Getting the right advice

David and his wife decided to speak to a licensed financial adviser so they could plan for the future together. The adviser reviewed David’s and his family’s situation to understand circumstances and financial goals, then started to build a plan that would help to safeguard their financial future. The plan helped David and his wife to:

  • Identify competitive insurance policies that account for pre-existing conditions.
  • Identify strategies to pay down the family’s mortgage and debts.
  • Grow David’s superannuation while he is still able to work.
  • Plan for an early transition to retirement, if required, including building a reliable income stream.

Given David’s health concerns, the licensed financial adviser also recommended appointing a financial enduring power of attorney. Both David and his wife should also speak with an estate planning lawyer to ensure their assets are protected and wishes clearly documented.

Adult male and female drinking coffee in the park

Working towards peace of mind

Thanks to his licensed financial adviser, David was able to purchase a suitable amount of Total and Permanent Disability, and income protection insurance. And, by reducing his debts and starting to plan for his financial future, he’s starting to feel more confident about his and his family’s future. “I wish I hadn’t kept putting reviewing my insurance off in the past, but it’s lucky I still have opportunities to plan ahead.”

Tips for protecting your finances against illness and disability

If, like David, you’re facing an illness, injury or acquired disability that will affect your ability to work, the below tips can help to protect you and your family from the financial impact.

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