Last year, Nathan, 37, and his girlfriend Jemma, 32, bought their first flat together, with a joint repayment mortgage of £300,000 over a 25-year term. They did not opt for insurance at the time, but after finding out that Jemma is pregnant, they now want to make sure they are protected should something happen to either of them. They are both well, but only stopped smoking four months ago when they found out about the pregnancy. What should be on top of their list of protection priorities and what are their options?
John Joseph, John Joseph Financial Services To begin, they need to look at taking out a mortgage protection plan and consider life cover, as well as critical illness (CI) and waiver of premium. It is also important to check the difference in the cost of a joint life plan against that of two individual policies. Nathan should consider personal life cover up to 10 times his salary, including the above mortgage protection plan in addition to personal CI. They should exclude any life cover or CI benefits provided by their employer as this is never guaranteed to be there if a client leaves...
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