There is an alternative that you may wish to consider
We were approached by a 36-year-old lady, Miss D. She was in the process of buying her first home and was looking for a Critical Illness policy to cover her mortgage. This was of particular importance to her as her mother had been diagnosed with breast cancer at the age of 38.
Unfortunately, whilst Miss D was able to obtain a critical illness policy. All insurance providers told us that they would exclude breast and ovarian cancer. The Insurers took this decision because both Miss D and her mother were below the age of 40 at diagnosis. However, Miss D would be able to obtain a fully comprehensive policy once she reaches the age of 40 years. Which isn’t much help to her right now.
We explained that although she is unable to obtain the insurance she ideally would like, she could apply for an Income Protection policy. This policy will provide her with a tax free monthly income should she be unable to work due to ill-health, including the diagnosis of Breast Cancer.
This had not been explained previously to Miss D by her Mortgage Adviser, so she was more than happy to apply for the policy.
She now has an Income Protection policy in place. This will pay out a monthly benefit of £1,000, if she is unable to work due to ill-health for more than 8 weeks, for a monthly premium of £28.00. The policy will run until she retires at the age of 68. The benefit could potentially be paid for the full term of the policy if she suffers a serious injury or illness which prevents her from ever returning to work.
Client id: 154946435
All our case studies are based on actual client scenarios, many of which pre-date 2020. We are confident that the acceptance decision made by the insurers would still be offered.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
If you are interested in arranging protection insurance it really can pay to take expert advice.
The levels and bases of taxation, and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
Whilst you are welcome to get a quote online but we would recommend you talk to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.
Interested in related stories
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- The protection industry pays out over £5.7bn in claims in 2019
- The Benefits of an Index-Linked Life Insurance policy
- The Importance of putting your policy in Trust
- What questions will I be asked when I speak to an adviser about Life Insurance?
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