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Posts Tagged ‘Personal insurance’

Author: Malcolm Wybrow (Wybrow and Associates)

I read John Phillip’s blog about the airbag for computer risk management and I thought straight away about the similarity of personal insurance cover for individuals. We all know that we are bullet-proof but as an old mate of mine says who pays you if you don’t turn up for work.

The quick answer is that most of us who work for someone have sick leave because someone else has arranged it as a pretty much standard feature of employment. This however is rarely enough for employees little less those who work for themselves as small business operators or contractors. For the self employed if you get sick or injured and have trouble working you simply don’t get paid and just as bad you could lose your business or contract that you’ve slaved to create

I had a rice farmer in Coleambally who rang me wanting to cancel his income protection cover because he found with the rice industry virtually stalled his income was down and he felt he couldn’t afford it. A realistic view especially when he told me that since he had purchased the policy he had never claimed a cent despite having on separate occasions broken a leg and then his right arm. He simply soldiered on despite the discomfort and his wife used to help him onto the tractor and/or the truck as required.

 

I used all my powers of logic to persuade him to retain his insurance especially as he was more likely to need it as he got older. Decisions are rarely made on crystal clear logic and emotion always comes in to play. I asked him to think hard and long about the repercussions of claiming and chance would have it he procrastinated for 6 weeks about cancelling it and then had a major heart attack. 

The policy paid up as it was designed to and he was able to recuperate properly. AS a temporary invalid he felt emasculated as the frail breadwinner and confided he had considered suicide but just for a second. He’s now back into the saddle and well on the road to recovery thanks to a little financial help from a policy taken out 20 years before.

Malcolm

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