Simon's Family - Protection and Insurance width=

Protection and Insurance Case Study

Simon is an engineer who contacted us because he had just bought his first house and he wanted to put protection in place to cover his mortgage liability in the event that he passed away or became critically ill. He wanted to make sure the mortgage liability would not pass on to his partner, with whom he had just had a baby son.


In our initial meeting we discussed Simon’s protection goals, available surplus capital amount and his attitude towards protection risk. We also worked through a fact find with him so we had a thorough understanding of his financial circumstances.


Simon’s main priority was to make sure his family were protected against the mortgage liability and he didn’t want his insurance premiums to increase over time. We formulated a proposal for Simon which focused on him taking out a level premium term life and critical illness protection policy which would decrease in value in line with the falling value of his mortgage over time. This policy will pay a lump sum if Simon dies or becomes critically ill and the value of the lump sum payment will be approximately the value of his mortgage at that time. The premiums Simon would have to pay will remain the same throughout the life of the policy. In addition, the length of the policy chosen, matched that of the length of Simon’s mortgage.


We presented our proposal to Simon in a detailed report. In the report we included information on the strengths and weakness of our proposed approach, information on the conditions which were covered by the proposal and most importantly a detailed breakdown of all of the costs involved in implementing our proposal.

Simon chose to proceed with our advice and as such we dealt with all the administration on his behalf.


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Disclaimer: these case studies are based on real cases but the names and exact circumstances have been changed for client confidentiality. They provide examples of the service we have offered previous clients and may not be suitable for you. Please speak to one of our advisers should you want guidance in any of these areas.