Oliver, 45, has just started working as a freelance journalist. He previously worked at a large national newspaper and had group income protection as part of the company's benefits package. However, his decision to go freelance has meant that he is no longer covered. Oliver is worried about not being covered as he would not be able to pay his outgoings should he become unable to work. He is particularly concerned about not being able to pay for his £300,000 over 25-year term mortgage, which he only recently took out. He is generally in good health apart from a motorbike accident three years ago where he fractured his ribs and punctured a lung. He is also a non-smoker. What do you recommend for him?
Peter Chadborn, CBKThe first consideration is to assess whether Oliver could maintain the cover previously provided by his former employer as favourable terms may prevail and the cover may have begun prior to his motorbike accident. Assuming this is not a viable option, a new personal IP plan would meet his priority concern. Assuming the mortgage repayments and, therefore, minimum cover requirement is approximately £1,750 a month, plus the fact Oliver has only recently changed jobs, then financial underwriting will be required. This would entail consideration of previous salary, target inc...
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