Author: stacey

Emma and her financial protection

Please note: The following is an example customer.

Emma is a 30-year-old single mum; her daughter is 4 years old and will be starting school soon. Looking at schools has made Emma realise her little girl is growing up and it’s making her think about the future. Her daughter might want to go to university when she’s older and there are a lot of costs involved in education. Naturally, Emma wants the best for her daughter and wants to make sure her future is protected.

Being on her own Emma is conscious that her daughter relies on her, and only her, and she worries about what would happen if she was to pass away before her daughter could look after herself. Emma is currently working as a retail assistant and rents her home, she’s not currently able to have lots of savings that she could leave to her daughter in the event of her death. So, she decides to look into life insurance.

Life insurance pays out a lump sum when the person insured dies, and is paid out to a beneficiary, usually a family member or friend. It can provide peace of mind that your loved ones are financially protected should anything happen to you, especially if you have dependants.

Emma chooses to get a quote for £150,000 of cover, she believes this would cover any childcare and educational costs her daughter might need/ face. She decides to get cover for 18 years …

Sarah and her financial protection

Please note: The following is an example customer.

Sarah works as a care assistant. In her line of work, she sees first-hand how loss can affect people and the financial impact it can have on a family. She’s seen the loved ones of patients not only dealing with grief but also having to change their lifestyle or move homes because they can no longer afford it without the additional income. This has made her look at her own situation and to consider how she can make her own passing easier on her loved ones when the time comes.

Sarah has a partner who she owns a home with and although they don’t have children, her partner would struggle to pay the mortgage on his own. Sarah would hate for him to have to leave their home in the event of her death so decided to look into financial protection. She learned that Life insurance policies could be a way of securing her partner’s future and could provide her with peace of mind.

Looking at the remainder of their mortgage, Sarah decides that her partner would need £200,000 to pay off the mortgage and to have enough left over to continue living in comfort. She therefore gets quotes for £200,000 of cover, and she decides to have the policy for 20 years, which means she will have the policy until she is 62 years old (she is currently 42). Due to the recent increases in inflation …

We all want to have a special Christmas this year, most of us didn’t get to celebrate in 2020 how we would have liked, so we’re hoping that Christmas 2021 will make up for it. And let’s be honest, 2021 has been just as difficult a year as 2020, so it’s understandable that we want to push the boat out and make Christmas as magical as possible.

But the festive period can be pricey. Even before the pandemic and the supply issues, Christmas would take its toll on our wallets, especially if you have kids. The latest toys and games can have eye-watering price tags, and then there’s all the food and drink to think about! Most of us won’t have much spare from our salaries during this time so it’s easy to see why people would put off taking out financial protection, it’s an additional expense you could do without, right?

It’s a common misunderstanding that financial protection is expensive, you can take out a life insurance policy from as little as £5 per month. This will vary from person to person as everyone has different cover requirements that affects the price, but when you think you can protect your loved ones for just £5, that doesn’t sound too expensive anymore.

What is financial protection and what does it offer?

For that £5 per month, you can take out a life insurance policy for yourself which means if anything happens to you and you pass away a lump sum …

The amount of cover you need will depend on your own personal circumstances, there is no one-size-fits-all answer. The factors you may need to consider include covering;

• Mortgage or rent payments
• Any other loan or debt repayments
• Household bills
• Education and childcare expenses
• Loss of income

To help you decide how much cover you would need, we’ve put together some examples:

First-time buyer

Meet Gemma, she’s 33 and working as a teacher. Gemma is buying her first home with her partner and this new financial burden has highlighted the responsibility she has to her partner and vice versa. Gemma is taking out life insurance to protect her partner should the worst happen to her, so they will be able to pay off the mortgage.

• Gemma and her partner decide to get 2 single policies
• They choose the Decreasing cover option as this is common for covering a mortgage
• The cover amount they decide on is £180,000 as this is the total amount on their mortgage
• And the cover term they choose is 35 years, again this is because their mortgage has a 35-year term.

Home mover

Meet James, he’s 40 and is a carpenter. James is married with a child and his wife is pregnant with their second child, this is causing them to move into a larger house and increase their mortgage. James wants to make sure his life insurance covers this increase in the mortgage and still provides enough cover for his family should he pass