Bad things happen to good people... the importance of income protection insurance

May 09, 2014
David Scouller

Just over 12 months ago, on the 26th of April, I took a bad fall whilst descending some stairs at home. So bad was the fall that it tore muscle from bone as I completely severed the quadriceps tendon.

The surgical repair is classed as major / emergency surgery, and the resulting recovery is 12 to 18 months. I was house bound for 4 of the first 5 months, and rather crippled for the first 8 months.

Dozens of hours were spent at RPA outpatients receiving physio. The inconvenience and impact on my family was unbelievable. My wife had to take over dropping, and collecting, my daughter to and from school, help me up and down the stairs, and completely take over all the physical tasks I used to do. All this whilst holding down a full time job. Fortunately, my wife works for a very understanding employer.

Had I been a tradesman, emergency service worker, or in any job requiring physical activity – I would have been off work for 8 months or more. Given the injury was suffered at home, I would not have been covered by workers compensation.

I did have income protection insurance, but as I could carry on my business at home, I was fortunate enough not to claim on it.

Whilst I thought about writing this BLOG months ago, what prompted me to write it was an accident suffered by a friend 3 weeks ago.

My friend, whom is self-employed in the building game, fell from some scaffold when the plank he was standing on gave way without warning.

The subsequent fall resulted in a smashed heal. The hardware inserted during the surgical repair is simply amazing. This injury also has an 18 month recovery period, and he may very well never fully recover. Unlike myself, my friend does have a physically demanding job as a renderer. He did not have any insurance in place to protect him from such an accident.

He is now without an income, and his job prospects are very bleak.

He is seeking advice about declaring bankruptcy. Financially, he is all but ruined.

I cannot stress enough of having income protection insurance in place when you are reliant on that income to service your debt, and pay for your living expenses. It us tax deductible – and as you read above – can be the difference of staying afloat financially after suffering an injury.

Posted in: Insurance

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