Many people have cover in place to protect their income, protect themselves against critical illness and/or to protect their loved ones if they were to die.
However, protection policies that were taken out some time ago might have been suitable then, but as people’s lives changes and as newer, and sometimes cheaper, policies are launched, their existing protection cover might no longer be the most appropriate.
We look at a recent case where a client thought that she had suitable protection, but this proved not to be the case.
Our client is a doctor in her 40s who wanted advice on her NHS Pension. She also mentioned to us that she had protection policies in place and had no need for any further cover.
We work with many medical professionals and so reviewed her NHS Pension and gave her the advice that she needed. We also asked if we could review her protection policies, just to make sure that she was fully protected as she had believed.
Having reviewed her protection policies we found a number of issues which had been missed or ignored by the previous financial advisers she had spoken with.
This included her Income Protection cover being too low as her salary had since increased, her mortgage cover increasing each year despite the fact that her mortgage debt was reducing, and the terms on these policies not lining up with her working plans or her mortgage term.
Having conducted a full protection review we recommended a new policy which included Income Protection, Life Assurance and Critical Illness cover. All of this cover is now properly aligned to her circumstances and protection needs and so she is now fully protected.
The above is for information only and does not constitute individual financial advice.
Content correct at time or writing.