Discussing protection shortfalls

Following the shocking news that their friend had suffered a heart attack in their 30s, we guided some prospective clients through their own protection shortfalls.

It is not very often that we are contacted to specifically discuss protection shortfalls from prospective clients, but recently, a couple came into the office triggered by a particular event.  During our conversation, they explained how not long ago, one of their friends in his late thirties had unfortunately suffered a heart attack.  He is making a good recovery and plans to return to work in a few months, initially on a gradual basis.

Everyone was shocked that this could happen to someone so young and although family and friends were hugely relieved about his recovery, this unexpected event may have caused potential problems for the family’s finances.

The couple then explained how their friend has life assurance, critical illness and income protection.  This cover was arranged in conjunction with a first mortgage many years ago.  As a result of this, the critical illness cover has paid out a lump sum, which him and his wife have used to fully repay their mortgage, which was a big relief at this time.

This made them think about their own situation and the financial impact on their family in the unfortunate event of a serious health condition or illness.  After discussing this between themselves, they decided to seek financial advice about reviewing their existing provisions from their employers and covering any shortfalls.

Our recommendations

We established that although both of their employers provided generous benefits, some shortfalls did exist, but these could be easily covered by arranging individual protection policies, which were set up in a matter of weeks.

Peace of mind

They commented that they were surprised at how relatively simple it was to arrange this protection and how it provided them peace of mind, in knowing that the family would be financially supported in one way or another, should health issues arise in the future.

After arranging the protection cover, we now advise this couple on their full financial planning needs including investments, retirement and estate planning.  This all part of our “holistic” financial planning service.

In relation to protection, we recommend you seek financial advice sooner rather than later.  It’s good to have the appropriate cover in place for peace of mind.

Financial Protection