As Kelly and Ian have no life cover, they are in danger of losing their new home should one of them ...
As Kelly and Ian have no life cover, they are in danger of losing their new home should one of them die or be unable to pay the mortgage through illness and/or loss of income. They are young and, while it may seem unthinkable, death or illness are no respecters of age. With this in mind, Kelly and Ian need to consider a flexible plan offering adaptable life protection.
Kelly and Ian seem to be ideal candidates for the 'menu' type policies that are now available. By using a decreasing option for life and critical illness (CI) cover geared at covering their mortgage, this should be a fairly inexpensive monthly outgoing. While arranging the life and CI cover, they may also like to 'bolt-on' a redundancy protection plan so they do not have to worry about this either.
It is not clear what benefits, other than a salary, either of them receive from their employment, but an element of income protection needs to be included so that it is geared to cover the monthly mortgage payments and other outgoings, if possible. All or most of the protection elements outlined above are available in plans such as Liverpool Victoria's MIMI.
Finally, as Kelly and Ian's family grows, their financial plans will need to adapt in order to suit their changing needs. As Kelly and Ian are 'at financial risk' due to lack of life protection, they will need to urgently consult a financial adviser to calculate an agreeable percentage of their income to give them the varied protection they jointly see as an immediate minimum. All of the above presupposes that the young couple are aware of their need for a valid Will which, throughout their life, should be renewed or modified as their circumstances change.
