Income Protection

We had a client who wanted income protection, as she was concerned that if she were unable to work she wouldn’t be able to pay her household bills.

The problem, however, was that her earnings were fluctuating as she had a temporary contract with her employer and therefore did not know from one week to the next what income she would receive.

To compensate this she also did some self-employed work, but again, proving earnings on an income protection policy may have presented problems.

On analysing the majority of pure income protection plans, we found this may prove a stumbling block. However, by undertaking detailed research across the whole of the market, Compass found a niche product which could pay out a set amount of benefit should the client be unable to work – and this amount was not based specifically on a percentage of earnings.

The client could therefore choose the amount of cover required and the length of the deferral period. As the premiums are guaranteed (although increasing due to age), they are also at a pre-set rate, so the client now has peace of mind over the cover and can budget accordingly.

This post was written and brought you by Compass Independent Financial Advisers.

Other articles you might like

Pension/Investment

Mr X was coming up to a major decision regarding his retirement and financial planning. He came to us for advice on both his retirement

Inheritance Tax

We were asked for a second opinion on advice that was given by a solicitor. The solicitor had given good advice about how best to

Mortgage – Buy-to-Let

Mr and Mrs W had recently married and were living in the annex of Mr W’s parents’ large family home. They were looking to purchase

Mortgage – Equity Release

Mr and Mrs L were referred to Compass by a local solicitor, as they wanted some information about equity release. They explained that they had

Mortgage – Residential

Mr and Mrs J, aged 75 and 71 respectively, were looking to move from Norfolk to Bedfordshire to be closer to their family. They had

Pensions/Divorce

Divorce is recognised as one of the most stressful situations most people can experience. At Compass we have completed a Pension Sharing at Divorce case