When my best friend first started experiencing anxiety attacks, he was in his mid-40s with three children and a significant mortgage. He worked as a school principal and was extremely dedicated to his work, having taken only about three days off in 25 years (and once for his father’s funeral). He was always the last person to leave the building at the end of the day. But his strong work ethic eventually led to burnout.

I first talked to him about income protection insurance about 23 years ago. He accepted my advice and purchased the insurance. Over the years, in his own mind, he questioned the relevance of the coverage, thinking he couldn’t really justify income protection because he was in good health and had a positive attitude about work.

Over the years, the pressure of being principal and trying to please parents, staff and the school board became overwhelming. His condition was so bad that even if he had no alternative than to return to work, he could not have done it; the thought of returning the next day would send him into a tailspin. Eventually he was diagnosed with generalized anxiety disorder.

When he was going through the worst of it, we would talk every day. He got counseling from a psychologist, but just couldn’t go back to his old job as principal, which of course meant loss of income. So, I reminded him, “You’ve been paying for this policy. That’s what it’s there for.” We assisted him with the claim, which he stayed on for two years. He then got another job as a deputy principal and went off the claim for a couple of years before going back on claim again. He’s probably been on claim for eight of the last 10 years.

Income protection insurance paid 75% of his normal earnings, and the benefit was payable to age 65 (he’s currently 58), with a 30-day waiting period. The policy also had a CPI indexing inflation benefit, so over time the monthly payment drew closer to his actual full salary.

The release afforded to him by this insurance policy is unbelievable. He said to me the other day, “Without this, I just could not turn up for work.” So, while he initially felt he could not justify income protection insurance, it saved his financial life and his family life, because he was and is able to spend time with them, especially when his children navigated their teen years.

Today, my friend keeps himself busy doing a bit of scripture teaching and tutoring. He also helps his wife with her side business of baking, decorating and selling personalized cookies. It’s small scale and a bit of fun, and he makes the odd delivery. It’s a fulfilling life.

Fortunately, the experience he had with the insurance company in Australia and the support, care and concern he’s received, has been phenomenal. He’s never had a minute of trouble in terms of getting that monthly payment.

Now he can provide for his kids and keep up with the mortgage. He is also able to put money away for retirement. He can maintain his financial plan and not have to sell the house or downsize. He’s not just scraping by; with this insurance coverage, he’s building a future.

I always say to clients “I hope this income protection, and other insurance is a waste of money. I hope you keep complaining about rising premiums and never have to make a claim on this. But I’ve seen it too many times now, and I know this works.” It protects wealth, and it can save lives as well.

Anything can go wrong when money isn’t there to keep a person’s life on track. It gives me great satisfaction to be able to advise people and have them make the financial commitment to protecting themselves and their family. When you see it happen, you realize this is what we are here for: to provide that safety net for individuals and their families.

Michael Coorey is a 15-year MDRT member from Sydney, New South Wales, Australia. Contact him at michael@strategicplanningsolutions.com.au.