Protection

Question 1

Protection in the event of death

Answer 1

Single life family income benefit plan

With a benefit level sufficient to cover maintenance payments / cost of uni

Term until the children are no longer financially dependent

Use of DiS benefits / existing pension and savings and investments to be agreed / discounted
Include waiver if premiums
To protect premiums from being unable to be paid due to sickness or accident
Indexation of benefits
To ensure cover maintains spending power in future
In trust to ensure prompt payment / avoid probate
Guaranteed premium to give known cost within affordability
Within ATR
This will pay out a tax free regular income
To ensure children protected in event of his death

Low cost protection
Simple underwriting

Question 2

Recomend and justify in event of serious illness for kabir

Answer 2

Single life, level critical illness insurance cover
Pays tax free lump sum on diagnosis of specific illness after survival period of 14/30 days
Sum assured enough to maintain lifestyle
Term until retirement
Waiver of premiums included to protect premiums in event of being unable to work die to sickness / accident
Indexation to allow for inflation and maintain spending power
Guaranteed premiums to ensure long term affordablility

Question 3

Recomend and justify protection needs in event of long term disability / illness for kabir

Answer 3

Income protection insurance
To provide a tax free monthly payment in event of being unable to work due to long term sickness / disability / illness
Benefits level 60% of income
Shortest affordable deferred period
Term until expected retirement age
Imdexed benefits to ensure cover maintains spending power
Own occupation if available to provide greater chance of pay out on claim
Guaranteed premiums to ensure no unexpected future premiums increases