Dave and Susan applied for a home loan and were successful. They made an offer on the beachside home – and it was accepted. Delighted, the couple posted a photo of themselves on social media, standing outside their new home in front of the ‘sold’ sign. Then in a few weeks, the couple moved in and set up house.
Protection against the unknown
Both Dave and Susan worked full time, and were in the habit of putting away money regularly. So they felt comfortable about meeting their mortgage repayments. But they also knew that if something happened to one of them, they could quickly fall behind – putting their beautiful home at risk. So the couple decided to look at the life insurance options available to them.
While they already had Life cover in place, which would pay out a lump sum if they passed away or became terminally ill, they did not have any cover to protect them if an accident or illness led to a permanent disability. Dave and Susan were keen to get the right kind of cover to suit their needs. Because they both led very active lives, which involved sports like skiing and surfing, they decided to choose to add an optional Total and Permanent Disability (TPD) cover to their policy, which would provide them with a lump sum payment if they were permanently disabled.
About 18 months after taking out their life policy, Dave damaged his back in a surfing accident.
Thinking the injury maybe permanent and he would be unable to work, Dave was reassured that a TPD payout could be used to help meet their mortgage repayment and modify the beach home so he could get around in a wheelchair more easily. The modifications and the ability to still meet their mortgage repayments without Dave working, would mean the couple could stay in their home – and make the best of their new situation.
Fortunately, Dave was lucky. His injury was not permanent, so he didn’t need to call on his TPD cover. With the help of rehabilitation, Dave has regained full mobility and the couple are back to enjoying their beachside lifestyle.