Caitlin, 25, has recently inherited £15,000. She wants to buy a house with her boyfriend Danny, 28, but as they hope to go travelling they are renting for a year. Caitlin works for a television company and earns £27,500. Danny is a dentist and earns £45,000. Caitlin is aware that she should still protect herself in case of ill health so that she can meet her monthly rent payments of £850 and student loan repayments of £100 a month. Although her mother died of breast cancer at 46, Caitlin is in good health. Danny is asthmatic but has not had an attack since he was 18. What options are available to them?
Peter Chadborn, Chadborn Baker & Kearle If Caitlin is happy to commit her inheritance to a joint purchase and does not wish to repay her student loan, then the priority for her and Danny is income protection (IP). Based upon the uncertainty of their travelling plans, the key consideration is policies with considerable flexibility including the option for career breaks, worldwide cover and the ability to adapt to future occupations. For their specific circumstances, I would recommend IP from Progress from Royal Liver. This IP policy has the option of a two-year career break, where the occ...
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