Case Study –Building Life and Income Protection Around a New Mortgage

The Client

Two clients were referred to our Private Client Insurance team through the mortgage desk.

As part of the wider advice process, we reviewed the financial risks surrounding both the mortgage commitment and the household income supporting it.

The Challenge

The protection requirement extended beyond a single risk. Life insurance needed to be considered in the context of the mortgage, while income protection needed to address the potential financial impact of illness or incapacity. At the same time, any recommendation needed to reflect the clients’ attitude to risk, wider circumstances and available budget.

The Solution

Following a comprehensive protection review, we assessed the available market and recommended a combination of life insurance and income protection. The policies were selected around the clients’ identified needs and the financial consequences they wanted to protect against, rather than treating protection as a standard addition to the mortgage. The premiums also needed to remain sustainable within the clients’ wider budget. The Henry Dannell Difference Arranging a mortgage creates a natural opportunity to consider the risks that sit around the borrowing. The value in this case came from looking beyond the debt itself and considering what would happen if death, illness or incapacity affected the income and financial commitments supporting it. By bringing mortgage and protection advice together, we were able to structure cover around the clients’ broader financial position rather than viewing each area in isolation. Protection policies are subject to eligibility, underwriting, exclusions and policy terms. Income protection benefits depend on the definitions and conditions of the selected policy.