Financial Protection for a self-employed client with children

Published on 12 April 2023

When you take out any form of borrowing it’s important to consider your protection needs. A mortgage is the biggest financial commitment you are ever likely to have so it’s important to understand the different ranges of policies that are available to you. Your protection needs will change as your number of dependants, job and financial circumstances change. It is important to review your protection policies regularly and especially when making changes to your mortgage. Finding the right level of financial protection especially as a self employed individual can be difficult.

177 Protect works with a range of insurance providers to find you the right level of protection for the things that are important to you. Take a look at how we recently helped a family to protect their mortgage. 

Client: Mr. and Mrs. X approached 177 Mortgages for assistance with securing a mortgage. During the initial consultation, the mortgage and protection advisor realised that the clients were exposed in certain areas of their financial well-being. They advised them on the importance of protecting their income and family in case of unexpected events.

Scenario: Their existing mortgage was currently not protected but their circumstances had changed and they now had children. The clients were self-employed and had no source of income if they were unable to work. 

Challenge: The clients were unaware of the importance of financial protection and had no idea what type of coverage was suitable for their needs. They had a limited budget for protection insurance and were unsure about what options were available to them.

Solution: 177 Protect worked with the clients to understand their financial situation and discussed the options to best cover them given their budget. After several consultations, the clients opted for a Level Term Life Cover policy with an element of Critical Illness cover that also covered their children until the age of 18. They also opted for income protection as they were self-employed and had no fallback if they could not work. The package of protection policies provided them with the right cover to suit their family and meet their budget.

Result: After 12 months, one of the clients’ children was admitted to the hospital with breathing difficulties. This resulted in the child spending many months in hospital, with lots of tests and ongoing treatment. As the clients were self-employed, every day they spent in the hospital with their child was a day they could not earn money. The income protection policy ensured that they were able to pay the mortgage and other household bills.

As well as this, the critical illness policy also provided a lump sum payout following the child’s diagnosis. The protection policies took away financial pressures for the family, so they could focus on their child’s recovery. Without the policy, the clients would have faced significant financial hardship and possibly had to sell their home. 

177 Protect know the importance of financial protection as a self employed individual and will help you understand the options available to protect you and your family within your budget. By taking out the right policies, you can protect your income and family in case of unexpected events. We work with a range of insurance providers to find you the right level of protection for the things that are important to you. We can tailor a protection plan to suit your family’s requirements at a cost you can afford. If your circumstances have changed since you took out your existing policies or you don’t have any financial protection and are unsure what policy is right for you. Get in touch with us today.

177 Mortgages and 177 Protect are open 7 days a week. We’re always happy to talk through your mortgage, specialist finance and protection needs in more detail. If you’d like to book an appointment or simply find out more information, please get in touch.

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