Jack Selway is 32-years old and a self-employed electrician based in the South-East. He is a smoker and is currently single. Jack took out a decreasing term life assurance policy with his mortgage and is now looking to take out an income protection plan. On average, Jack earns £32,000 a year and his mortgage repayments stand at £600 a month. Aside from his mortgage, Jack has no other outstanding debt and has savings of £4,000. What are his income protection options?
Diane Saunders, Diane Saunders Financial Adviser An income protection (IP) policy should be everyone's first policy. Not many of us can manage without next month's income and the prospect of losing this for a prolonged period of time would result in financial disaster for most of us. Jack could probably manage for three or six months by using his savings and any outstanding invoices for income. He should set up an IP plan to age 60 or 65, and I would want to confirm his income with his accountant or through tax returns, as there is no point in over insuring if he could not substantiat...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
