Protecting your family

Wendy and Jim are both aged 29, married with two children, Sarah aged 5 and Rebecca aged 6. Their main concern is ensuring that their family will be financially secure in the event of either of their deaths. They have no life protection in place.

Our client’s needs

Their main concern is ensuring that their family will be financially secure in the event of either of their untimely deaths. They do not currently have any life protection in place.

CST Wealth’s Advice

We  recommended:

  • Decreasing Term Assurance arranged on a joint life/first death basis for a 20 year term to ensure the mortgage loan would be repaid in full.
  • A Family Income Benefit plan for both Wendy and Jim that would pay a tax free monthly income to the surviving spouse. We recommended they take this out over a 16 year term to coincide with Sarah reaching the age of 21, as they hoped that Sarah and Rebecca would no longer be financially dependent by then and working themselves.
  • The total premiums were approximately £30 per month which provided them with £100,000 of decreasing term cover over 20 years and the Family Income Benefit cover of a tax free annual income of £30,000 over a 16 year term.

End result

The family is protected with the correct level of cover so that if the worst happens, they can still achieve their goals as they would not have a mortgage to repay and would also receive a regular tax free monthly income whilst the children are growing up.

It also means that they are not spending excessive amounts on protection and instead can use their spare money for other purposes.