Swiss Life

Swiss Life offers both standalone and accelerated CI plans. Both automatically include children's cover ' including cover for adopted children ' to age 18 and the accelerated plan with buy-back as an option, when selected at outset. The accelerated contract is available with guaranteed rates, unlike the standalone version. The clear gap in the family's financial portfolio is CI ' Dan is well catered for by his employer, in terms of protecting his family in the event of his death or long-term incapacity, but it is unclear if the mortgage is protected.

Assuming the mortgage is not protected the recommendation would be to protect the mortgage with a joint life, decreasing life or CI. At a cost of £17.70 (based on a 9% mortgage rate) per month, if either of them were diagnosed with a critical illness, the remaining mortgage would be paid off with a lump sum. In terms of protecting their lifestyle thereafter, it is recommended that CI benefits be taken out as family income benefit over a 15-year term. If the mortgage is paid off by the decreasing policy, it is estimated that they would need £16,500 a year to maintain their lifestyle. Therefore the simplest option is for them to take out a joint life accelerated plan paying £1,375 a month, with a buy-back option and inflation protected. It is assumed that Helen is not covered by the income protection arrangements and that it would cost up to £15,000 a year to replace her services in the home. In this case if either of them suffers a critical illness, there would be sufficient to live on. The buy-back option can be exercised after survival for a year. This plan would cost £50.46 per month.