Sarah, 37, recently separated from her long-term partner with whom she has two children; Emilia, five, and six-month-old Daniel. As their house belonged to her ex-partner, she had to move and now rents a two-bedroom flat for £1,000 a month. As a GP, Sarah earns £65,000 a year, however, she is concerned about becoming ill or injured and being unable to work. She is looking at taking out some protection but is unsure what cover she needs the most. Both Sarah and Emilia are healthy, but Daniel was born premature at 30 weeks and had to remain in hospital for a few months. What recommendations would you give her?
James Brooke, Anand Associates Sarah's family is only financially secure if she is healthy enough to continue working. The first thing to do is establish what benefits, if any, she has as a result of being a GP. On the basis that she is in a small private practice and, therefore, has no employee benefits, she will need to protect her income against being unable to work due to long-term disability. Assuming her essential monthly expenditure is around 50% of her salary, she could protect 50% of her income to age 60 for about £130 a month on a guaranteed premium basis. Although Sarah may fee...
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