What was the situation?
I was approached by a HNW, 60 year old person looking for critical illness and life cover to pay off their outstanding loans in the event of their death.
In addition to their own residential mortgage, they were also a guarantor for the mortgages of their children, all of which were sizeable mortgages. The client wanted to secure enough cover for all three mortgages, with enough to maintain the family’s comfortable lifestyle. The total required policy value was just over £1 million.
What was the issue?
Due to their age, the client was keen to begin their cover quickly, in order to maximise the full length of their protection. With this factor also causing the cost of cover to increase with some insurers, it was important to find a solution that was not prohibitively expensive.
Typically, a term based life cover policy is available up to 70 years old. Due to the client being 60, the maximum term I could achieve would be 10 years. In most situations, we wouldn’t recommend decreasing critical illness cover but due to their circumstance, HNW status and overall general health, decreasing cover was deemed the most suitable solution.
What was the process?
Assessing the client’s application as a whole, I spoke directly to insurers who were willing to review it.
Additionally, the client was concerned that the application process would be slow if they contacted individual insurers for quotes, which is normally the process. At LDN Finance, we have outstanding relationships with providers and underwriting teams. Using these relationships, we can efficiently assess applications and make decisions about suitable insurers to ensure we do not waste time and clients receive comprehensive cover quickly.
What was the solution?
The final policy successfully fitted the clients requirements. Should the unthinkable occur, the client is now able to clear the rest of their residential mortgage, as well as the two mortgages belonging to their children. Additionally, the family can continue their lifestyle with no need for cutbacks.
The term was agreed for 10 years with decreasing cover up to the maximum age.
Lending solutions with LDN Finance
Do you have a family and are looking for a protection insurance to cover them? At LDN Finance, our extensive panel of insurers mean that we can comprehensively assess your requirements, and find an insurer who will bespoke a policy to cover your needs.
Contact us to speak to our of our protection advisers today.