A Life Assurance Case Study
Here’s a case study that illustrates the benefits of taking out a Life Assurance policy.
Tony & Sarah used Manchester Mortgages to remortgage their existing property and at the same time we reviewed their existing Life Assurance that protected the Mortgage. After a full discussion it was decided that they would arrange a Joint Life Assurance policy which included Critical Illness Cover.
Our clients also protected their income by way of an Accident & Sickness policy.
Two years later Tony fell ill and was rushed to hospital. It was discovered that Tony (Aged 34) was in need of a quadruple heart bypass and was operated on straight away.
This was a very distressing time for both Tony and Sarah as they had a young family and were concerned about how Tony’s absence from work would affect the mortgage payments.
Sarah rang Manchester Mortgages and we advised that Tony would be able to make a claim on the Life Assurance Policy they had arranged as the condition that Tony was suffering from was covered under the Critical Illness section.
In addition Tony was able to make a claim under the Accident & Sickness Policy they had also arranged.
Manchester Mortgages made arrangements to meet with Sarah whilst Tony was in hospital to help complete the claim forms for both policies.
Claims were submitted to both insurance companies. After obtaining written confirmation from the medical staff the claims were accepted by the insurers and the benefits paid out.
Tony received a monthly benefit for 10 months (until he went back to work) from the Accident & Sickness policy which enabled them to continue to pay their mortgage.
They also received a lump sum payment from the Critical Illness element of the Life Assurance Policy which they could use to pay off the mortgage payment if they wished.
Tony made a complete recovery from the quadruple heart bypass and is now back working full time. Tony and Sarah decided not to fully repay the mortgage but to reduce it to a much smaller amount.
The rest of the money was used to put on a large extension to their property so that they could stay in their home. When asked Sarah said “ You never know the value of insurance until you need it. We were under a lot of pressure at the time and knowing that we had the peace of mind in respect of our mortgage being protected removed the financial pressure and contributed to Tony making a full recovery”.
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Manchester Mortgages is a trading name of Mortgages 4U (North West ) Limited which is authorised and regulated by the Financial Conduct Authority (FCA register number 301076). Registered in England & Wales No. 4729252. Registered office: 7 Randale Drive, Bury, BL9 8HZ.
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