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• Life insurance
• What cover do I need?

What cover do I need?

Here are some scenarios that show the sort of life insurance needs that different people have and the types of policies that could suit them.

These are only for illustration purposes and we recommend that you speak to you one of our advisers to get the right cover for you.

Profile 1

John is 25 and has just bought his first house. He has a mortgage of £125,000 which is over 25 years on a repayment basis. He is self employed, working as an IT consultant.

Protection options he might want to consider:

Need	Suitable policy
A lump sum payment to clear his mortgage if he gets seriously ill	Critical Illness
An ongoing income to allow him to maintain his lifestyle should be unable to work	Income Protection

Profile 2

Lucy is a single mother with a 2 year old daughter. She currently has a mortgage of £60,000 on the property she is living in. She works as a lecturer at the local university whilst her daughter attends nursery.

Protection options she might want to consider:

Need	Suitable policy
A lump sum payment to pay off the mortgage if she were to die	Life Assurance
An ongoing income to allow him to maintain his lifestyle should be unable to work	Critical Illness
An income to provide for her daughter until she leaves university in the event that Lucy is not around to support her herself	Family Income Benefit
A replacement income for Lucy if she is unable to work due to long term sickness or serious accident	Income Protection (Accident and Sickness policy in the short term)
Cover to maintain Lucy's mortgage payments should she be made redundant	Accident, Sickness and Unemployment

Profile 3

Peter and Janice are 35 and have 2 small children. They own their property on which there is a mortgage of £135,000. Peter earns £50,000 as an accountant and Janice is currently a full time mother.

Protection options they might want to consider:

Need	Suitable policy
A lump sum to pay off the mortgage should either Peter or Janice die	Life Assurance
A lump sum to pay off the mortgage should either Peter or Janice suffer a serious illness	Critical Illness policy
A replacement income for Peter in the event that he is unable to work due to long term sickness or serious accident	Income Protection
A replacement income for Peter should he die	Family Income Benefit