Protecting A Mortgage And Income For A Sole Buyer

The Clients 

The client was purchasing a property in their sole name. While they had no dependants, they wanted to ensure that in the event of their death the property could be left mortgage-free to close family members. 

In addition to protecting the mortgage, the client was also keen to protect their income should they be unable to work due to illness or injury. 

 The Challenge 

As a single applicant, the client relied entirely on their own income to meet the mortgage repayments. This meant two key risks needed to be addressed: 

The client also had three months of full sick pay from their employer, meaning any income protection policy needed to align with this to avoid unnecessary cost. 

 The Solution 

We arranged two protection policies to address both risks. 

Firstly, a decreasing life cover policy was arranged to match the mortgage balance and term, ensuring the loan could be repaid if the client passed away. 

Secondly, we arranged an income protection policy designed to supplement the client’s employer sick pay arrangement. By selecting a three-month deferred period, the policy only begins paying once the client’s sick pay ends, helping keep premiums lower. 

To further reduce the monthly premium, the client opted for a two-year limited benefit period, meaning the policy would pay a maximum of 24 monthly benefit payments during any claim. 

Key details of the policies arranged: 

Life Cover 

Income Protection 

The Outcome 

The client now has a protection structure that covers both long-term and short-term financial risks. 

If the client were to pass away, the mortgage would be cleared, allowing the property to be passed to family without debt. Meanwhile, the income protection policy provides financial support if illness or injury prevents the client from working, helping ensure mortgage payments and other commitments can continue to be met.