Robert and his wife Caroline are both 34. Robert is a construction worker and Caroline is a primary school teacher. In their spare time, they both enjoy paragliding. They have recently bought their first house and have a repayment mortgage of £125,000 on a 25-year term. They are considering taking out cover to ensure their house is protected if they should fall ill and become unable to work. They prefer to obtain long-term cover, but their budget is limited. What options are available to them?
Jason King, Life Policies Direct Robert and Caroline are right to consider long-term income protection (IP) because the cover is more comprehensive and, in some cases, more affordable than short-term cover. Estimated mortgage repayments and associated insurance costs come to about £800 a month, and to keep costs down we would split the cover between them. Assuming Robert does not work at heights of more than 50ft he would generally be placed in occupation class four, whereas Caroline would be in class three. Paragliding presents a problem to some providers who would look to exclude this...
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