Do not regret a decision

Paddy and Bertha had been married for over 15 years and over this time they had worked hard to save and buy their own home which they lived in with their two dogs.

Both of them were experts in their respective professional fields, Paddy was an IT Engineer and Bertha was an Accountant and they earned a high monthly income between them.

On purchasing their home, they felt that they needed an insurance policy to cover their mortgage should one of them pass away so that the surviving spouse is not left with a huge debt.

The other options they were given included Critical Illness insurance and Income Protection but these they felt were not important at that time but maybe later on in life they may consider it.

Sadly, life threw an unexpected curveball and Paddy was diagnosed with stage 2 colon cancer and life as Paddy and Bertha knew it, changed drastically and not in a good way, in a very short space of time.

The cancer treatment meant Paddy struggled to continue working and it was unclear how long he would be out of work for. Bertha became a carer for him and at the same time juggling a busy full time job as the bills still needed to be paid and this included the mortgage.

Paddy and Bertha realised that they had made a huge regrettable mistake in not taking out Critical Illness insurance or Income Protection as advised. Although the payout for this would not have given Paddy his health back, it would have certainly helped make their lives a lot easier. It would also have meant that they did not have to dip in to the savings pot they had spent years building up which was now slowly being used up when it may not have needed to.

Had Paddy have taken out Income Protection at the time they were given the advice, they would still have had a monthly salary coming in for him. Now with one income, they hardly had enough left over.

Living this new reality, Bertha took out some Critical Illness and Income Protection for herself.

Paddy was now unable to get additional protection policies as his treatment was on-going, but they reasoned that at least she would be covered in the event something happened to her.

It was the realisation that they had their priorities in the wrong order when they took out their mortgage protection policy.

 

Published May 2024.

It is important to take professional advice before making any decision relating to your personal finances. Information within this case study is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.