Protection Cover for Large UK Mortgage

Client’s need: Protection was needed to cover a large UK mortgage. In addition the clients wanted to acquire a property in a France

What Financial Relationships did:
Firstly we ascertained the Will and Trusts position to ensure these were set up correctly and up to date. If they hadn’t been then we would have referred the clients to see Estate Planning specialists.*

A review of the Employment Contract and Employee Benefits package confirmed Income Protection was already covered through work. This complimented a review of individual existing policies and of previous employer pension arrangements. State Pension Forecasts for both clients were also obtained at the first meeting.

The employer concerned operates a restricted list for investments that are a condition of an employees contract, so measures needed to be put in place for the Retirement, Investment and Savings options for our clients.

A mortgage was obtained from the clients’ bank as a review of the open market review showed the bank’s direct deal to be the best option for the clients.

Client benefit:
Having agreed with the clients to undertake all of the work on a time costed basis the New Business and Para-planning unit at Financial Relationships set about researching the case.

It was agreed at outset to apply to multiple providers for Life Cover and Life Cover with Critical Illness Cover because £1m of Live Cover was required and at that level the standard premiums quoted do not include automatic premium ratings that insurers apply for higher levels of cover. Underwriting requirements also change and some providers offer restricted terms or decline cover as was the case for our clients. We also had existing medical conditions to consider with regards to the Total Permanent Disability elements of the cover applied for.

Aside from the initial meeting all of the work was carried out at fee rates charged by the non advisory team, which are lower than the fees that apply for advisers and Partners at our firm. Whilst the contracts were set up on 27 year terms, our fee was paid for within 14 months as a result of the lower commission free premiums.

Whilst protection is the cornerstone of Financial Planning and was the key focus of our review for this husband and wife (and their children), the clients benefited from a truly holistic approach to all of their Financial Planning needs. Our advice was also given on using tax allowances properly including National Savings and Investments, State Pension entitlement and cash rates*.

This all starts with reviewing existing policies and benefits then there’s existing Wills and Estate Planning arrangements to review as well.

To be truly independent, advice should take into account both commission paying products and non commission paying products. We believe ‘whole of market’ advice means exactly that, for example recommending going direct to lenders where Mortgages are concerned if appropriate.

In this instance we were able to introduce our clients to our Joint Venture partners International Private Finance to advise on the French Mortgage and World First to provide specialist Foreign Exchange advice.

Both came through with beneficial rates and deals that could not be generally obtained. This was only matched by the excellent advice and service they provided the clients.

*Estate Planning, tax planning and National Savings products are not regulated by the Financial Services Authority.

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