Income Protection - A Case Study

Income Protection – A Case Study

Case Study – Self employed dentist wants to protect her income in the event of an accident or injury to her hands

income protection graphicCLIENT’S SITUATION
Manchester Mortgages arranged a mortgage for a First Time Buyer, a 32 year old self employed dentist. The mortgage itself was straightforward enough; however, our client was aware that now she no longer lived with her parents she would be responsible for covering all the monthly bills and mortgage payments from her income.

Love or hate dentists they are very qualified professional people who have had years of training and practice to achieve their expertise.  And of course they need the use of their hands and fingers to do their job!

THE PROBLEM
There are not many providers of Income Protection who will cover a person’s ‘own occupation’ in the event of accident or illness. Normally if you are able to retrain or do another job the benefit would be reduced or not paid at all.

In addition our client wanted any benefits received to be payable up to her retirement age of 68 (she is now age 32) and opted for an 8 week waiting period, which means that the client would not receive benefits until 8 weeks after claim (other waiting periods are available such as 4, 13, 26 & 52 weeks).

THE SOLUTION
Manchester Mortgages researched the insurance market and was able to recommend a provider that would provide benefits of up to 70% of her income tax free on a monthly basis which meant that she would receive £3,200 per month up to the age 68 in the event of a claim.

  • The premium was £63.30 per month with an option to index her benefits against inflation if required.
  • The underwriting of the policy was quite straightforward with proof of income being required at the time of any future claim.
  • Manchester Mortgages also arranged a life and critical illness policy for this client to ensure that her mortgage was fully protected.


CONCLUSION

Our client now has peace of mind that in the event of something happening to her hands her income will be protected providing her with funds to cover all her bills, living expenses and mortgage payments. Find out more about how our income protection plans can help you.

Contact Manchester Mortgages on 0161 706 0242 to discuss all your mortgage and protection requirements – we are here to help.