Insurance for 18 - 35s

Case Study: Adam 25 years old

Adam is a 25-year-old solicitor whose parents encouraged a professional education that they were not privileged to have themselves. His family provided for most of the cost of Adam's education and, as a result, Adam is particularly concerned about being self-sufficient in the future.

In addition, Adam has a close school friend who was diagnosed with non-Hodgkin's lymphoma at the age of 22. This is a cancer of the lymph nodes and is a disease that can target young adults. Following diagnosis, Adam's friend has been particularly dependent on his family for both financial and physical support.

The costs associated with the condition involved regular personal care that has caused the patient's mother to leave her job, given that she could not commit to full or permanent part-time duties. Prior to this she was earning $40,000 per annum as a medical secretary.

Adam feels that if he were to suffer a medical trauma such as this, he would require funds to:

  • extinguish his debt of $25,000
  • provide funds for out-of-pocket medical expenses which, in the case of his friend, were estimated to be $50,000
  • afford nursing care for a period of 12 months at a cost of $70,000, and
  • replace lost income equivalent to at least two years, which would be $140,000.

The total required benefit is therefore $285,000.

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