Part of a financial advisor’s job is to guide you through challenging times, asking the difficult questions and putting strategies in place to protect your interests and those of your family.
You might not want to dwell on the prospect of you or a loved one becoming critically ill but planning for the unforeseen is an important part of any financial plan. It can give you peace of mind too.
Here at Globe IFA, we have recently helped several of our clients receive life-changing critical illness payouts. In each case, our clients hadn’t claimed before we became involved.
Successful payouts ranged from £75,000 to more than £300,000.
These potentially life-changing sums have allowed our clients to pay off debts, make mortgage payments and continue to enjoy their current standard of living, after being diagnosed with an illness.
What is critical illness cover?
Critical illness cover is insurance that pays out a tax-free lump sum if you’re diagnosed with one of a specified list of illnesses. Critical illnesses might include a stroke, heart attack, certain cancers and conditions such as multiple sclerosis.
You should always check exactly what is covered by your plan when you take it out.
If you make a successful claim, the plan will pay out once and then cease. You can use the money you receive to help with living costs, mortgage repayments or to pay for your treatment or care.
What Globe IFA can do for you
At Globe IFA we always take the time to get to know our clients. One way we do this is by conducting a full fact-find, regardless of the type of advice you’re seeking from us.
Our thorough approach gives you the peace of mind that we know your financial and personal situation inside out, and that the advice we give is tailored to your circumstances.
In the three cases below, the extra time we took to get to know our clients resulted in successful critical illness cover claims, and the paying out of life-changing amounts.
1. Mortgage advice results in £75,000 payout
A 53-year-old client contacted us via the Financial Conduct Authority website after searching for mortgage advice, before moving to a new house. During our fact-finding exercise, we found that she had taken out a critical illness plan ten years before.
Our client was aware that she had cover in place and had tried to claim nearly seven years ago, following a mastectomy. She had been told by the insurer that it was too late to claim.
Globe IFA stepped in on her behalf and refuted the provider’s stance, resulting in a successful claim. The due amount was paid retrospectively, backdated to the date of diagnosis, along with interest. The total paid was £75,474.
This allowed our client to pay off her car loan and credit cards, and to improve her cash flow situation. With £63,000 remaining, she will be taking an offset mortgage once she sells her current home.
2. Mortgage fact-find leads to £300,000 payout
Globe IFA made contact with this client in the autumn of 2017. He held three mortgages, one for the main residence in which he lives with his wife, and two for Buy to Let properties. They were all coming to the end of their fixed-rate deals.
At our subsequent meeting, our client mentioned that his wife had health issues.
She had a non-malignant brain tumour that was growing and impacting on parts of the brain that affect both vision and facial muscles. Removing the tumour was not an option due to the risk of nerve damage. It had been diagnosed a couple of years ago, but she was unaware that she could claim for it.
With Globe IFA’s support, she made a successful critical illness claim. The policy paid out a total of £311,000, including a refund of premiums from the point of diagnosis, plus interest.
The funds were put towards a major refurbishment of the couple’s main residence.
3. Successful claim pays out £100,000
A 45-year-old client contacted our office to inform us that he had been diagnosed with prostate cancer.
We advised him to speak to the cover provider and, following their standard checks, a successful claim was made.
The man’s plan included life cover of £496,000 (sufficient to pay the mortgage), and was also written in trust for his wife, giving her the ability to pay the mortgage in full should her husband die whilst the plan remained in force.
Get in touch
Critical illness cover can offer peace of mind for you and your family, as it did for these clients and their families. But these are just some examples of how we can help.
By taking the time to get to know each of our clients personally, we build a full picture of your financial position and can supply you with advice that’s right for you. And we can assist you with any aspect of your finances.
If you’d like to discuss a possible critical illness claim, or any other financial matter, get in touch. Please email hello@globeifa.co.uk or call 020 8891 0711.
