Case Study: Strategic Insurance Advice Saves Client Over $1 Million
Insurance is often seen as a “set and forget” solution—but as this case study shows, the right advice at the right time can make an extraordinary difference to financial security.
Client Profile
Age: 50
Profession: Medical Specialist
Income: High-income earner
Employment status: Ceased work due to stroke
Background
Our client, a highly regarded medical professional, had built a successful career and maintained personal insurance through her superannuation. Tragically, a stroke left her unable to continue working.
During this time, she cancelled her income protection policy due to financial pressures—unaware that her condition may have entitled her to significant benefits. Without specialist guidance, she relied solely on a Centrelink disability pension for two years while managing the challenges of her recovery.
Later, she began the process of lodging a Total and Permanent Disability (TPD) insurance claim through her superannuation fund.
How Strategem Helped
As her long-term accountants, Strategem was approached to assist with the preparation of her claim documentation. During this process, our team identified an opportunity to achieve a better outcome and referred her to our in-house insurance specialist.
Through a detailed review of her policy and circumstances, we were able to:
Restructure the claim to minimise tax, preserving significantly more of her payout.
Protect her family circumstances by ensuring her claim proceeds remained within superannuation, avoiding unintended impacts on child support.
Reinstate her income protection claim, on the basis that the policy had been cancelled after the onset of her illness—unlocking benefits that would have otherwise been lost.
The Outcome
By working collaboratively across our taxation and wealth management teams, we were able to deliver life-changing results:
Avoided a lump sum tax bill of $198,000 in the first year and around $25,000 annually on investment earnings moving forward.
Structured her TPD benefit so she could draw funds as needed, supporting her rehabilitation and income needs long term.
Reinstated her income protection claim, establishing ongoing payments of $208,000 per year until age 65.
Back pay amount of $654,000.
In total, our specialist insurance advice secured additional financial benefits worth at least $3 million over the next 15 years—not including the tax savings on superannuation investments.
Key Takeaway
This case demonstrates the power of integrated financial advice across insurance, taxation, and superannuation. Without reviewing her cover and claims strategy with a specialist, this client would have missed out on millions of dollars in benefits and faced unnecessary tax consequences.
At Strategem, our insurance specialists work alongside our accounting and wealth teams to ensure clients achieve the best possible outcomes—especially during life’s most challenging moments.
💡 If you’re unsure whether your insurance is aligned with your current circumstances, now is the time to review it. The right advice can make all the difference.
📞 Contact us today to discuss your insurance needs with our experienced team.
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If you need further advice, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants & Advisors are available to support you.
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