Background
John worked as a Printer for a company near Accrington. He was divorced with two children and living on his own. Following previous advice from his Bank he had invested in an Individual Savings Accounts and the odd Investment Bond. The Bank had not however really provided the opportunity to sit down and discuss with John any ‘what if’ scenarios such as considering the consequences of him suffering a short or long-term illness or disability.
Our approach
Logic Wealth Planning arranged a meeting with John to discuss his existing investment portfolio. He felt he needed some professional Financial Advice since his Bank had not made contact with him for some time and he was concerned that he was not investing in the right funds and investment areas. We were happy to carry out the initial consultation which was at our expense and we conducted a full review of his existing investments. This showed that John had accumulated a respectable amount under investment although it would be insufficient to bridge the gap in the event of John suffering a long-term illness as a means of replacement income. The question was asked ‘ What if you were unable to continue working due to you being incapacitated ? What would be the financial consequences ? ’ John had never considered this. He had a pre-existing condition of mild epilepsy but nothing which had really troubled him, nor had he ever suffered from a severe illness or condition that had left him unable to work for a prolonged period.
We discussed in detail John’s goals and aspirations and reviewed all his existing investment plans, pointing out the lack of income protection and critical illness cover. A complete financial plan was produced which enabled John to understand:
- A complete breakdown of his investments given his attitude to risk, and whether he was investing in the correct areas or not.
- Recommendations in relation to his investments and whether any alterations or changes were required to reflect his personal situation, needs and goals .
- Protection shortfall calculations in the event of John being unable to produce income due to a long term illness or disability.
- How the insurance works alongside his employer’s sickness arrangements.
John accepted our investment recommendations and also decided to opt for Income Protection to protect his income.
Soon after this John had a seizure at work whilst operating a printing machine. His mild epilepsy had taken a turn for the worse and he was placed on sick leave with a view to obtaining a Consultant’s report and the full diagnosis. John approached us to enquire whether he could claim on the new plan which had only been in existence for a short time.
The outcome
John’s employers eventually stopped paying his full income and he was therefore solely reliant on the state to provide. Logic Wealth Planning administered the income protection claim for John and the provider paid the tax free regular income from the point when his employer stopped paying him. As a result John was able to keep financially afloat during this anxious and unsettling time of his life. He had never really imagined that one day he was going to end up being one of those statistics. To this day, John has been out of work due to the same condition and continues to receive a regular income from the provider, nearly twenty years on.
