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.
