Tom, 35, lives with Beverley, his wife of the same age. Last week, Tom fell down the stairs and while his doctor has said there will be no lasting damage, he has torn the muscles in his left shoulder. Tom works as a teacher. He earns £30,000 a year and, while smoking, he is considering joining a gym soon. Beverley is currently looking for work as a personal assistant but is keen to lead a healthy lifestyle. Neither of them drink alcohol. They have a £120,000 mortgage that will be repaid over a 25-year period. They both have reasonably good medical history apart from a knee injury that Beverley has. What cover should they consider?
Peter Chadborn, CBK The priority is to provide protection for their mortgage, however, personal protection should not be overlooked. Assuming Tom's position is permanent, he is likely to have employer's death-in-service benefit of twice pensionable earnings, accompanied by a spouse's pension of 50%. He should also have sick pay benefits of full pay for six months and half pay for six months. However, the risk of relying upon these benefits is that he could lose them should he change employment as a new employer may not replicate them. This issue will require careful consideration. Due...
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