It’s devastating to watch the nightly news and see reports of young drivers, especially P platers, who are fatally injured or worse, killed on Australian roads. Unfortunately, there are no signs of this problem reducing. The anxiety and fear parents have about their children driving are real, and are highlighted by the figures below:
Parents of teenagers are aware of the above risks, especially as their children get closer to driving age. The emotional impact resulting from these events are immeasurable. However, the financial stress can be limited with the right strategies in place.
A lump sum benefit may assist in providing a young adult with medical help and rehabilitation. It may also allow a working parent to cease working and provide care and attention to their sick child.
Jennifer and Adam speak to their financial adviser regarding their wealth protection needs to protect their young family financially. They have two children, Harry and Gemma, who are 15 and 13 years old respectively. Like all typical teenagers, Harry can’t wait to get his licence and go out for drives with his mates. Jennifer and Adam understand the risks with young drivers and they admit to having concerns.
Jennifer and Adam’s financial adviser recommend Child Cover as an added option to their risk strategy to address these concerns.
Tragically, 3 years later, Harry was a passenger along with 3 other teenagers in a car being driven by a P plater. Harry suffers severe burns to over 40% of his body and head trauma. Jennifer and Adam’s Child Cover policy paid a lump sum benefit of $200,000. This benefit enabled them to provide their son with the appropriate medical care and rehabilitation. In addition, Jennifer used some of the funds to enable her to take 6 months off work to be by Harry’s side during this difficult time.
Source: ANZ Wealth Australia Limited article 29 April 2016
The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial planner.