Introduction
We helped a homeowner in Farnborough arrange life insurance and serious illness cover to provide financial protection for their family.
Our customer already had a mortgage and wanted insurance that could provide financial support if they died or suffered a serious illness covered by the policy.
After researching the available options, we arranged a 15-year protection policy with Vitality, providing the life and serious illness cover our customer was looking for.
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The Scenario
Our customer was an established homeowner living in Farnborough, Hampshire. With an existing mortgage and family financial responsibilities, they wanted to make sure suitable protection was in place.
They were looking for life insurance alongside cover for serious illness, rather than relying on life insurance alone.
The original requirements included £100,000 of life insurance and £100,000 of life and serious illness cover, arranged over a 15-year period.
Our customer specifically wanted level-term protection, where the amount of cover is intended to remain at the agreed level throughout the policy term.
The aim was to provide a financial safety net for their family during this period, with protection against both death and certain serious medical conditions.
The Challenge
The main challenge was finding suitable cover that addressed two different risks while remaining competitively priced.
Life insurance and serious illness cover serve different purposes.
Life insurance generally provides a payment if the insured person dies during the policy term, subject to the policy conditions.
Serious illness cover can provide financial support following a diagnosis or medical event that meets the insurer’s policy definitions. The illnesses covered, payment amounts and claim conditions can vary between insurance providers and products.
Our customer wanted more than a basic life insurance policy. They were particularly interested in obtaining protection against a broad range of serious illnesses.
This meant the recommendation needed to consider both the amount of cover and the conditions under which a claim could be made.
What We Did
We researched the available protection policies against our customer’s requirements, taking into account the requested cover amounts, 15-year term and need for serious illness protection.
Our review identified Vitality as an appropriate provider for the cover required.
One of the relevant features was Vitality’s Serious Illness Cover, which formed part of the recommended protection arrangement.
We also considered the additional health and wellbeing benefits available through Vitality. These offered potential rewards and incentives for eligible policyholders, although the insurance protection itself remained the main consideration.
We explained the recommended cover to our customer, helping them understand the protection being arranged and how it related to their circumstances.
The recommendation was intended to address their need for financial support following death or a qualifying serious illness, rather than focusing solely on the monthly premium.
The Solution
We arranged life insurance and Serious Illness Cover through Vitality over a 15-year term.
The original case information records the following cover requirements:
- £100,000 of life insurance.
- £100,000 of life and serious illness protection.
- A 15-year policy term.
- Level-term cover.
This gave our customer protection against the circumstances they had identified as important when reviewing their family’s financial position.
Vitality’s Serious Illness Cover was a relevant part of the recommendation because our customer wanted protection extending beyond death alone.
Any payment under the policy would depend on the insured event, the applicable policy definitions and the terms of the cover arranged.
Why This Solution Worked
The recommended arrangement addressed our customer’s two main concerns: providing financial protection for their family in the event of death and having cover available for qualifying serious illnesses.
The 15-year term matched the period of protection our customer had requested, while the specified cover amounts reflected their stated requirements.
Vitality’s additional wellbeing benefits were also relevant to the provider selection, although these were separate from the core insurance benefits.
The recommendation brought together the types of protection our customer wanted under an arrangement suitable for their stated requirements.
The Result
We successfully arranged life insurance and Serious Illness Cover with Vitality for our Farnborough customer.
The cover provided the agreed protection over a 15-year period, addressing the customer’s original aim of having financial support available for their family if an insured event occurred.
Our customer also gave positive feedback about the guidance and explanation of the options available.
What This Case Shows
Life insurance and serious illness cover can address different financial risks, which is why it is important to consider both when reviewing family protection.
A life insurance policy may provide financial support following death, but it will not necessarily provide a payment if the policyholder becomes seriously ill.
This case demonstrates the value of comparing the actual cover available, including policy definitions, payment conditions and the length of protection required, rather than concentrating on premiums alone.
For homeowners with a mortgage and family commitments, reviewing these different types of cover can help identify gaps in their existing financial protection.
Looking for Life and Critical Illness Insurance?
If you are reviewing your family’s financial protection, Kerr & Watson can help you compare life insurance and critical illness cover from a range of insurers.
We provide protection advice to customers in Farnborough and the surrounding areas.
Contact Kerr & Watson to discuss your circumstances and the protection options available.
