Fiducia Wealth Management
Posted in Financial Advice, Life Assurance, Protection on 14.02.12

Family Protection

Background

Danny, aged 35, owns his own website design business and is married with a young family.  He was referred to us by his father, an existing client, for advice on how best to protect his family in the event of death or illness.

Objectives and Planning

Danny had no existing life or health insurance arrangements in place other than a decreasing term assurance to cover his repayment mortgage.  He had a budget of £100 per month which was affordable to him after all other expenses.

His main priority was to provide a capital sum to support his family if he were to die.  It was agreed that a sum of £500,000 was appropriate taking into account his budget and family circumstances.This would provide cover for a period of 25 years to protect his family until the children were no longer financially dependent.

We also looked at protecting Danny’s income in the event of long term illness.  He typically drew a salary of£20,000 per annum from his business together with dividends of a further£20,000 and we recommended protecting this amount as fully as possible.

We also suggested Danny included Critical Illness Cover which would pay a lump sum on diagnosis of one of a range of specified critical illnesses, such as cancer.

Outcome

As a non-smoker, being in good health and without a hazardous occupation or hobbies, Danny benefited from standard underwriting rates.  The premium for his life assurance was £32per month.

The maximum benefit level he could protect for his income was £22,000per annum which would be sufficient to meet the family’s necessities including their monthly mortgage repayments.  The premium for this was £34 per month to age 65, being his intended retirement age.

Finally, we were able to secure comprehensive Critical Illness Cover of£77,500 for a monthly premium of £34 over a term of 25 years.  This would provide an invaluable capital sum should Danny suffer a critical illness during the time when his young family are most dependent on him.

We were able to put together a comprehensive package of life and health protection for Danny within his agreed budget.

Follow Up

Regular meetings are held with Danny to ensure the cover put in place continues to meet his needs taking into account his circumstances and economic factors such as inflation. We are also reviewing the position should his wife die or suffer a serious illness.

 

If you would like to know more about how we as Financial Advisers can help you secure peace of mind by ensuring your family are well protected in all eventualities  then visit the Protecting Your Family section of  our website: Protecting Your Family or send us email at: email@fiduciawealth.co.uk

The information contained in website is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occasioned in connection with the content hereof and any such action or inaction. Professional financial advice is necessary for every case.

Fiducia are an award winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border. www.fiduciawealth.co.uk

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority.. FCA No. 408210

Fiducia Wealth Management
Posted in Financial Advice, Life Assurance, Protection on 14.02.12