Make sure your client’s mortgage is protected should the worst happen and provide cover for ongoing bills and expenses.
Getting on the property ladder is an exciting time. But getting there can be hard. Many couples will have saved hard for a deposit and are also likely to have taken the maximum mortgage available to them. As a result protection may not be something they’ll have really thought about, especially if they don’t have children and they’re on a budget.
But using a menu approach to protection, you can add value to any cost conscious client…
As an example, a couple could protect a £175,000 mortgage for 25 years with Life Cover on a joint life basis for just £17.68 month.*
However, if this Life Cover was based on two single life plans, their cover could be doubled with two potential pay outs for just an additional £1.07 a month.*
With a joint life plan the cover will stop once a claim’s been made. With two single life plans, cover for the claimant would stop but the other life’s cover will stay in place as long as they keep paying the premiums. In addition, with a joint life plan the cover details chosen are applicable to both lives. With two separate life plans, each life assured can tailor the cover to suit them, which means one of the lives could be covered for more or for longer.
But what about critical illness? As our couple are on a budget, we’ve used the family income benefit to provide this valuable cover at a reduced cost. On this basis, an additional £45.68* a month could give our couple a possible pay out of £7,000 each year (up to £175,000 over 25 years) worth of Critical Illness Cover in the event of successful claim.
This shows how your clients could benefit from reduced premiums if they choose to receive any potential pay out as an income rather than a lump sum. This could also remove any worries about how to invest a lump sum and what’s more, these income payments continue even if your client recovers from their illness and returns to work.
These are obviously just suggestions - you can create your own package from any of our covers, tailoring them to suit your client’s needs and budget.
In many cases we can offer cover before your client's plan actually starts, from the moment they complete their application. Ideal if they’re waiting on their mortgage completing.
Your clients can reduce the amount of cover over the term of their plan in line with their mortgage. Making it a more affordable option than level cover.
* This example is for illustration purposes and does not represent actual customers. Quotes are based on guaranteed rates and on clients aged 35 and 34 next birthday and are non-smokers. Plan term is 25 years. Premiums are correct as at 6 December 2017. For full details of risk factors, exclusions, limitations and terms and conditions, please see our plan details.