Philip and Arthur have just entered into a civil partnership and both want to ensure that the other is able to cope financially should they suffer an illness and become unable to work. They both smoke and enjoy a drink most nights but regularly go to the gym. Philip is a writer but is currently not earning, while Arthur is on £40,000 a year as an accountant. They live in a two-bedroom flat in North London, which Philip inherited from his father. What protection can you recommend for them? They can afford about £100 each.
Kevin Carr, LifeSearch If everyone could afford (and was willing to pay) £100 each month for protection, the UK probably would not have a protection gap. Presuming there is no mortgage on the property, no other existing benefits in place and that both lives are in good health, long-term income protection (IP) is the product likely to be most suitable for both lives, which pays a tax-free replacement income in the event of ill health. Arthur would be able to insure roughly up to the amount he receives each month in his bank, and even though Philip is not currently earning, cover is still...
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