Protection for clients is a cornerstone of offering comprehensive advice . When clients are purchasing properties or arranging mortgages, it’s common for protection needs—such as life insurance, critical illness cover, and income protection—to be overlooked amidst the excitement of a new purchase. However, whether you're buying, renting, or already a homeowner, it is essential to consider protection plans as part of your broader financial strategy. The consequences of not doing so can be devastating.

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Solution & Approach

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Recently, we conducted a thorough review of a client’s personal protection. The clients already understood the value of protection, as they had life and critical illness cover in place. However, they had purchased their policies through an online platform like "Compare the Market," directly and without regulated advice. This approach typically leads to budget-driven decisions without a real understanding of plan differences and long-term implications.

 

A key benefit of a protection review is the opportunity to receive unbiased, experienced and regulated advice. This ensures that clients are fully informed when selecting the most suitable plans based on their needs and circumstances. It's vital to ensure that the coverage is sufficient, and a regular review ensures that you are adequately protected, especially as your circumstances evolve.

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Outcome

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Following our review, the clients decided to opt for a more comprehensive life and critical illness policy. While the premium was slightly higher than their existing plan, the new policy provided a significantly broader range of coverage, including enhanced definitions for critical illness and additional benefits—making the decision to switch an easy one.

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Comparison of plans:

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• Previous/Current Policy Owned at time of review: The client’s existing policy only covered 21 critical illnesses, with no added benefits or options for expanding the coverage.

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• New Policy Incepted as a replacement: The revised policy offered coverage for 54 illnesses, including 22 additional critical illnesses (excluding advanced cancers), and several added benefits. Notably, the new policy also allowed for the inclusion of children's critical illness cover at any point during the term of the plan, should it be required.

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Another significant aspect of the review was ensuring that the protection plans were placed into trust, something that was missing from the client's original policies. Setting up a trust ensures that, in the event of a successful claim, the proceeds do not form part of their estate. This prevents potential inheritance tax liability and bypasses the need for probate, meaning that the client’s family receives a faster payout. Unfortunately, trusts are often overlooked or set up incorrectly, but it is essential that they are correctly established at the time of policy inception.

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The Benefits of a Protection Review:

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1. Expert Knowledge: Access to comprehensive insights on available plans, definitions, and providers to ensure the best possible protection.

2. Streamlined Application: A smooth application process that guarantees the most appropriate contracts and terms are selected for your needs.

3. Trusts Set Up: We handle the setup of trusts, ensuring that trustees and beneficiaries are properly selected and documented for peace of mind.

4. Ongoing Reviews: Regular protection reviews throughout the term of the policies to ensure they remain suitable as life circumstances change.

5. Claims Assistance: In the unfortunate event of a claim, we provide full support to manage the process, removing the stress and ensuring that your loved ones receive the protection they deserve.

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By regularly reviewing and updating your protection portfolio, you ensure that your coverage remains adequate, relevant, and efficient, no matter where you are in life. We’re here to offer expert guidance, keeping your financial future secure.