• Aventur Wealth

Case Study: Family Protection - One Life to Live

Updated: Dec 16, 2020

As we move through life, it’s easy to get caught up with daily pressures without stopping to think about what the future might bring. After all, we only have one life to live, so it’s vital that we protect ourselves in case we are faced with a crisis.

If you have children, it’s important to factor family protection into your plans, should the worst happen, and either you or your partner pass away. Securing your family’s financial future will give you peace of mind.

One of our valued clients sadly experienced a terrible family tragedy. However, due to their life cover, they were provided with much needed financial support during a difficult time.

A family who needed affordable life cover

Adam and Emily Wilson* were a typical family of two adults and two children. They both had good jobs and had made provisions in terms of their financial plans. Our team had provided Mr and Mrs Wilson with a range of financial advice, which included pensions, investments, and we handled their mortgage too. As they had no cover in place, our advisers highlighted to the Wilsons that life assurance would protect their family in the event of death.

The Wilsons wanted to keep premiums as low as possible; the maximum amount they could afford was £124 per month. But they also wanted to ensure that should anything happen to one of them, the family would have enough money to live on for a long time. Therefore, life cover was arranged for £1.3 million with an 18-year term at the monthly cost of £124. Their policy term length would cover them until their expected retirement age. At this stage of their lives, their mortgage should be paid, and they would no longer be reliant on any work income.

Life assurance will always be tailored to reflect any individuals listed on the policy, but it can be adapted to suit your term length, amount of benefit, and your chosen monthly spend.

Family tragedy strikes - £1.3 million pay out

In April 2019, Emily tragically passed away. Consequently, Adam was faced with having to look after their two children, whilst trying to work full time and continuing to pay the mortgage. At a difficult time when he was grieving for his wife, the last thing he wanted to deal with was his financial situation. But due to their life cover policy, Adam’s future was about to be secured.

Adam received a £1.3 million pay-out from his life assurance company. And as a result of this large benefit, he has been able to take early retirement knowing that he has financial security for his family. From the cash sum, Adam has been able to retire, has bought a new property, and now spends all of his time with his two children.

Nothing can prepare you emotionally for a family tragedy like the Wilson’s. When you’re grieving for a loved one, the very last thing you will want to think about is your financial affairs. Although life is unpredictable, there are certain steps you can take to protect your family. By ensuring you have suitable policies in place, you can remove this extra burden and allow an insurance provider to give you a vital financial buffer in your time of need.

A qualified financial adviser will help you to protect your family as part of your financial plan. Life assurance and other forms of cover give you peace of mind that your family will be secure, should the worst happen and you or your partner pass away.

Family protection enables you to enjoy life’s special moments in the knowledge that you are prepared financially, should tragedy strike.

“As result of taking out the right level of life cover, I’ve been able to retire, buy a new home and enjoy my time with my children.” Adam Wilson

If you need advice on family protection, or you’re worried that your current cover may not be effective should the worst happen, get in touch to talk to our financial advisers.

*Case Study produced using actual events, however client names and specific information changed where possible to ensure client confidentiality.

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