Two of our valued clients (a married couple, Mr and Mrs P) initially approached Number One Mortgages in 2013 to discuss getting a mortgage. They had been recommended by a friend and their initial enquiries were centred around whether they could get a mortgage and what type of mortgage they should go for.
In this instance, we advised that they take out critical illness cover and life insurance alongside their mortgage.
It is part of our usual process to discuss the potential risks of taking out a mortgage and to offer advice on protection products at the same time as recommending mortgages. In this instance, we advised that they take out critical illness cover and life insurance alongside their mortgage.
The purpose of these products is to pay out a lump sum cash payment in the event of either of them dying or becoming critically ill. Our clients took out the protection with Scottish Provident and on successfully completing on their mortgage moved into a family 3-bed home with their child.
Both were working although Mrs P also provided most of the childcare at home.
Sadly, after a year of living in their new home, Mrs P became critically ill with a rare type of cancer. She had to stop working as she underwent chemotherapy. During this time they were able to claim on their critical illness policy and their insurance provider paid out a lump sum of £170,000 which was enough to pay off their mortgage in full.
This meant that the family were able to concentrate on the treatment and the subsequent recovery and there was no pressure for Mrs P to return to work. Mrs P is now in recovery and due to some of the financial pressure being removed, has chosen to leave work and concentrate on looking after her child during this difficult time. Our thoughts are with the family.
We are always available to offer advice on this and other financial matters. Contact us on 01273 736536 or use our contact form.