Parental protection

Learning objectives

• Constructing a protection portfolio for a modern family

• Interaction of mortgage, personal and business needs

• Importance of trusts

Agenda

• “A modern family”

• Client scenario

• Additional needs

•Calculating covers required

• Financial planning outcome

Agenda

• “A modern family”• Client scenario

• Additional needs

•Calculating covers required

• Financial planning outcome

A modern family’s protection needs

A modern family's relationship

42%

Current divorce rate in UK

118,140

Divorces

50%

In first 10 yrs

45 m 42 f

Average age

48%

1 child < 16 yrs

Source: http://www.ons.gov.uk/ons/search/index.html?newquery=divorce Apr 2014

A modern family’s business

Source: www.ons.gov.uk/ons/rel/regional-trends/area-based-analysis/births-and-deaths-of-enterprises-in-local-enterprise-partnerships--2004-11/sty-business-enterprise-closure-rates.html

FOS-protecting a modern family’s needs

906 critical illness complaints

1439 income protection

Source: Annual Review of customer complaints – Financial Year 2013 / 2014 Pages 47 / 48 Financial Ombudsman Service Limited, May 2014

Agenda

• “A modern family”

• Client scenario• Calculating covers required

• Additional needs

• Financial planning outcome

Client scenario

The name: MED.net is used here as a purely fictional UK based company as part of a case study example. It is not to be confused with any other company, organisation or legal entity.

• Mortgage protection cover of say life, critical illness, income protection etc-but do they have any other needs?

Immediate protection needs

Agenda

• “A modern family”

•Client scenario

• Additional needs •Calculating covers required

• Financial planning outcome

Fact find qualification

Agenda

• “A modern family”

•Client scenario

• Additional needs

•Calculating covers required• Financial planning outcome

• Qualify target sums for all the required areas

• Review existing plans & employee benefits ...fit for purpose?

• Net off as appropriate

• Resulting covers required

• Subject to Paul & Linda’s budget and priorities

Calculating covers required

Budget planner

Mortgage protection options

Family protection

Family protection

What is a trust?

A trust is a way of holding property for the benefit of another without

giving them full and immediate control over it

Life Policy

Who is to benefit?

Who is to look after the trust?

Rules and regulations

MED.net business protection

Agenda

• “A modern family”

• Client scenario

• Additional needs

•Calculating covers required

•Financial planning outcome

• Mortgage Protection - repayment of mortgage

• Personal protection - continuity of income

•Personal protection - continuity of income for son from previous marriage

• Business protection

• Removal of potential claim on family home

• Sole control for surviving shareholder/fair value for share of business.

Financial planning outcome

Learning objectives

• Constructing a protection portfolio for a modern family

• Interaction of mortgage, personal and business needs

• Importance of trusts

“Knowledge is of no value unless you put it into practice.”

Anton Chekhov

Thank you for your time

Question 1:

What is the main type of protection business you are engaged in?

(i) Family & mortgage

(ii) Business

(iii) IHT

(iv) All of the above 

 

Handset questions

 Question 2:

Would you like a Friends Life Account Manager to contact you regarding the support available?

(i) Yes

(ii) No 

Handset questions

 Question 3 – Please rate the:

Quality of presentation 1-9 

Handset questions

 Question 4 – Please rate the:

Value to your business 1-9 

Handset questions