Following the birth of their first child, Sanjay and Asha were concerned about their financial security. They wanted to take steps to ensure their family would be financially secure, even if the worst should happen.
Although they each received some employee benefits, their knowledge of the details was limited, and they were unsure of how best to plan for all eventualities.
The new parents were worried that, in the event of either of their deaths, the surviving partner would struggle financially. This was coupled with concerns over how it could have a detrimental impact on their son’s future, in addition to the emotional challenges of such an event.
We started by reviewing Sanjay and Asha’s current situation and considerations for their future plans. As a result, we were able to advise a strategy that covered their debt liability, a separate lump sum that would provide security, and an annual income that would help cover the cost of raising a child through to their son’s 21st birthday.
The amounts provided were reflective and complementary to their existing employee benefits. As both Sanjay and Asha held medical insurance, we also removed the duplicate cover on their son, saving a little tax too.
The amounts covered and terms required differed for each aspect. Nevertheless, we were able to affect a multi-benefit plan via a single provider that covered all their needs, simplifying the process should a claim need to be made. As the couple are hoping to welcome more children in the future, securing a plan that could be updated to reflect this was also a key consideration.
Tackling the issue was quite a daunting discussion at first. However, the knowledge that they now have comprehensive and flexible cover in place has reduced both parents’ anxieties around security should something happen to either of them.
We also introduced Sanjay and Asha to a solicitor to draw up wills and Powers of Attorney for them, allowing their wishes to be known should anything happen to them.