Protection Case Studies

Whatever your circumstances and stage in life, protection has never been more important.

Income Protection Case Study

David is a self-employed Plumbing and Heating Engineer. Unfortunately David had a long term back injury and was unable to work for 6 months. As a result of taking an income protection policy that we recommended to him, he was able to receive an income of £1,000 per month after an initial 4 week period.

Thankfully David has recovered and is now back at work. His policy is still in force and will cover him again for this injury or for any other reason until he reaches age 65.

Mortgage Protection Case Study

Mark and Sarah bought their first property 8 years ago and were advised to have a Life and Critical Illness policy in place from the start. Recently Mark was diagnosed with Cancer, he has had to take 5 months off from his job and is now thankfully on the mend 2 years later. Thanks to the policy we recommended to him, he was able to repay his mortgage in full from his Critical Illness cover paying out.

This has meant that he and Sarah have been able to deal with Mark’s illness and recovery without having the added stress of making mortgage payments. If Mark had passed away, Sarah would have the security of knowing that she does not have the extra outgoings of making a mortgage payment when the household income had been reduced significantly.

Family Protection Case Study

Dan and Emily have been married for 15 years and have two children aged 10 and 8. They have a Mortgage Protection policy in place but also took a Family Protection policy out as well. The Family Protection plan meant that if either of them died, the policy would pay out £25,000 per annum until their youngest child was 25.

Unfortunately Dan passed away in 2014. Although it has been an incredibly difficult time for Emily and her children, she has been reassured that she has the £25,000 per annum from her policy to try and replace Dan’s income and to make sure that her children do not miss out on the things her and Dan had planned for them.

Business Protection Case Study

GES is a partnership of Clive, Alan, Richard and Dave. GES is currently worth £100,000 and has equal partners. GES wants to have protection in place should any of the partners die unexpectedly.

Each partner takes out a £25,000 term assurance to retirement age. The policies are written under Trust for the other partners, with all four of them as Trustees. Each has signed a Cross Option Agreement (COA). So, if Clive dies, the life office would pay £25,000 to Alan, Richard and Dave as Trustees. They would split the money between themselves as surviving partners and beneficiaries and each use their money to buy Clive’s share from his wife.

Clive’s estate ends up with £25,000 cash for the value of his share. Alan, Richard and Dave can continue with GES as equal partners with no further obligation to Clive’s wife.