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