Case study

Professional Adviser
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Gemma, 30, has just bought her first property with a mortgage of £147,000. As she has income protection cover through her employer, Gemma is looking to take out a personal critical illness plan. Although she is a fitness fanatic and does not smoke, her mother was diagnosed with multiple sclerosis, aged 51, and she is concerned this will affect her application. What policy will best meet her needs?

Alan Lakey, Highclere Financial Services Gemma has the option of a term assurance based around the mortgage term or a whole of life (WOL) plan, which offers the flexibility to adjust to future mortgage and lifestyle changes. Perversely, it is cheaper for her to arrange a plan with integral life assurance than a standalone plan and although life cover may not be needed now it is likely to be required in the future. While a decreasing term plan can be obtained for as little as £25.70 per month, it would have reviewable premiums. A better option would be a guaranteed rate plan with Scottish ...

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