We were arranging a high value residential mortgage for our clients and as part of our service, James Ferguson, our Protection Adviser, offered an appraisal of the client’s risks and the options available to protect him and his family.
James quickly identified the main shortfall and described the options available to mitigate them – i.e what would happen to the client’s family if one of the main earners were to pass away. He identified a need to set up their mortgage insurance in trust.
The solution was a simple decreasing term life insurance policy for the mortgage balance – this keeps the cost low by reducing in line with the outstanding mortgage over the term of the loan. This ensures the mortgage will always be covered.
We arranged the policy in a trust which makes the policy much more tax efficient as it would not incur inheritance tax (which does not increase the price at all and is something you’re unlikely to see on an online comparison sites).
James also explained a simple serious illness policy which would pay a lump sum in the event of the client contracting a serious illness; (something nasty like certain cancers or a heart attack, or in case of the provider 102 defined illnesses!).
This payment would allow the family to obtain the best treatment, pay the bills and recover without the stress of money problems. We separately tailored this level of cover for the client and added this into the life insurance product to keep everything together but maintaining that the policies were technically separate. I.e. – claiming on the serious illness part would cancel the life insurance which would remain in place.
This approach created a bespoke package while being conscious of cost.
The monthly premium was a fraction of the monthly mortgage payment and the client was more than happy with the price – we put the policy in place quickly and managed the process; exactly as we do for our client’s mortgage applications.
If this is something you would like to discuss let us know and we will arrange a convenient time for James to call you.