I’m Terrified

Hi Scott,

I have been diagnosed with a brain tumour and require surgery with no guarantee of an outcome. I am 44 years old, married with twins (boy and girl, aged seven). Our home is worth $1.1 million with $85,000 owing, we have $110,000 in the bank. I earn $70,000 a year, and we have a combined $75,000 in super. My recovery time will be two to three years if all goes well. What should I do for my family’s security in this uncertain time? Thanks for listening.

Chris

Chris,

As a dad myself -- my heart breaks for you.

Thankfully, you’re in a very strong financial position. The $110,000 in cash you have is something we call Mojo. It’s used for emergencies -- and you, my friend, are having an emergency. With your small mortgage your Mojo should stretch the length of your recovery. And in a worse case scenario you could look at downsizing down the track. Though I think that’s unlikely.From a practical point of view, I’d do three things:

First, talk to your employer and take stock of your options -- will you be able to continue working part-time? Then look at your personal leave, annual leave, and any long-service leave.

Second, call your health insurance and review the likely out of pocket expenses you may be hit with. That’ll help you organise a budget.

Third, call your super fund and see what insurance cover you have. You may find that you have income protection which, after a waiting period, can provide up to 85% of your usual wage for up to 2 years and in some cases up to age 65.

Good luck, and good health.

Scott