Emma, 28, works for a local firm and earns £23,000. She lives in a flat with Mia, her seven-year-old daughter. Emma bought her flat three years ago and has an outstanding mortgage of £65,000. She is a non-smoker, in good health and has savings of £3,000, which are kept in an Isa. Although she could not afford protection when she bought her flat, she is now interested in purchasing life cover and some form of additional protection. What cover options are available?
Diane Saunders, principal of Diane Saunders IFA As a single parent, Emma needs to consider two potential disasters: first, what if she dies before Mia grows up and second, how will she live if she becomes too ill to work? Emma also needs to consider who would look after Mia. Has she made a will and appointed guardians for her? If not, she needs to do so immediately. Plain 'vanilla' term assurance will provide a lump sum that can be used in various ways to provide an income that will cover Mia's expenses. Depending on her age, her guardians may choose to pay off the mortgage...
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