A couple were referred to me because they wanted to review their existing life insurance arrangements following a recent property purchase.
The previous adviser had set up 2 single policies for life insurance the quote was £30 per month, however with the disclosure of their aviation hobby this increased to £100 per month because the Insurance Company perceived an increased risk. Alongside this challenge, the polices were not set up “in trust” meaning that if one partner died, the life insurance proceeds would go to their respective family’s and leave the surviving partner with the outstanding mortgage. This did not fulfil the client’s key objective, to pay off the mortgage in full in the event of first death.
During the review meeting we discussed in depth the benefits of not only protecting the mortgage but also the provision for cover in the event of serious illness. I then offered them the choice of replacing the existing policies for the initial sum of £30 pm OR replace and add critical illness polices in the event either are diagnosed with a serious illness, for the sum they had been paying of £100 per month. The clients chose the single life policies written into trust with the additional critical illness cover so that in the event of serious illness they would receive a cash lump sum. The clients now have improved protection for the same price they were paying for life insurance only cover.
This was underwritten and placed with a household named insurance company who do not penalise high risk sports such as aviation.
If you are a glider pilot or have a ppl and would benefit from a financial review contact James at Best Financial Planning 01865 361191 or email@example.com