Income Protection – Case Study

by | Wednesday 15th Jun 2022 | Mortgage Case Studies

Woman secures income protection

Key Facts For Our Income Protection Client:

  • Middle-aged professional businesswoman.
  • Self-employed with extremely profitable business income that increases significantly year on year.
  • Took out critical illness cover and income protection 2 years ago that covers her income in-case anything should happen to her health.
  • Income for the last two years has jumped up by quite a bit so her current policy won’t cover her loss of income and maintain her lifestyle if she were to get ill.
  • Client was left vulnerable by unprotected income, especially as she is now over the age of 50.

Our Client:

Our client has been working with Oportfolio in different capacities over the last two years. In 2020 she approached us to help with remortgaging her residential property which we completed for her and to help her secure some insurances as she did not have any in place at all. Something that is never advisable, especially when you have a large debt such as a mortgage.

She is a self-employed businesswoman with a very profitable business that has great potential for growth. As a self-employed person, she receives tax overviews and tax calculations from HMRC which calculate how much tax she pays, and her annual income is determined by her net profit after tax has been deducted. In 2020 her income from the business was already very healthy and was expected to increase again over the next two years.

In 2022 our client’s fixed mortgage deal was coming to an end so it was time to re-look at the mortgage and transfer her on to another fixed mortgage deal. It soon became clear that her income had increased by around £50K compared to the last time we secured her mortgage and protection, quite a significant figure. Meaning that her increased income and financial lifestyle that she had been living over the last two years was not covered under her current insurance policy.

What Did We Do To Help:

Oportfolio is a business that likes to offer one all encompassing service that helps our clients to arrange and maintain all aspects of their finance in one place, for example we offer mortgages, remortgages, product transfers, income protection, life insurance, will writing etc, all under our banner.

As she was already our client, our advisor already knew her situation and had already formed a relationship with her, so we were very familiar with her financial needs. As part of the remortgage process in 2022, our advisor collected up to date income documents and they soon realised that her income had increased by a large amount since the last time we arrange income protection for her.

Because of this increase in income, our client’s lifestyle and credit commitments had changed quite significantly and the way she was living her life could not be maintained comfortably by her current insurance product if anything she affect her income in the future. After assessing her income documents and discussing her current outgoings, our advisor identified her new requirements and contacted our recommended insurance companies to get some updated policy illustrations.

We quickly managed to get some very appealing terms back from our income protection company that not only increased her income cover to cover the new income and lifestyle she was living but only increased her monthly premium payment by £40, a very small amount to cover quite a large increase in income.

Our client is very happy with the new deal that we have secured for her, and she feels comfortable and secure that as her business flourishes and she can enjoy the benefits of what she has built, she won’t need to worry if anything happens in the future. With a newly remortgaged property on a competitive rate and the best insurance policies available, our client has really benefitted from the all-encompassing service of Oportfolio.

What Is The Income Protection Policy?

  • The policy is an income protection product.
  • The policy covers £200,000K+ over 12 years until the client reaches the age of 60, also when her mortgage term ends.
  • The premium is £127.57 a month.
  • To claim on the policy, she needs to be unable to work for 6 months. After this she can claim enough money to maintain her lifestyle per year until the end of the term.

If you or anyone else you know is looking to secure some protection, please feel free to give our advisors a call to see how we can help.

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