IP will go a long way to protect Mark, what he is missing, however, is insurance that would pay off...
IP will go a long way to protect Mark, what he is missing, however, is insurance that would pay off his mortgage if he were to be diagnosed with a critical illness.
If Mark's existing life assurance is a menu product then he could add IP and critical illness (CI) cover to this. If not, then he could cancel his old plan and take out a menu product that would incorporate all the benefits within one policy. This would mean he would have one policy fee, one direct debit and one application as well as the flexibility to adapt the plan as his lifestyle changes.
Self Assurance from Scottish Provident would allow him to include life assurance, CI cover and IP in one plan. It would also include immediate cash benefit free, meaning that should he make a claim on his CI cover, he would receive an immediate cash lump sum payment to cover his living expenses in the short-term.
Mark could take out up to 50% of his salary in IP on an own occupation basis. This would give him £500 to cover his mortgage payments plus £750 for his living expenses each month. The cost of IP alone with Scottish Provident would be £18.55 a month. If he were also to include £70,000 of death or earlier CI benefit on a decreasing basis to cover his mortgage, his total premium would be £46.02 a month.
