Case Study 3 – Unearthing a forgotten protection policy


A few years ago, Chris and Linda had set up their own business. During a consultation with their adviser, recommendations were made to safeguard their financial future, including a suggestion to set up some critical illness cover. This type of insurance pays out a lump sum if you are diagnosed with a serious illness which is considered critical under the terms of the policy.

During a recent review of their investments and pension planning, Linda informed their adviser that she had recently recovered after receiving treatment for skin cancer. This had involved an operation and a series of radiotherapy treatments. Linda was delighted that it had all gone very well and she had received the ‘all clear’.

Their adviser remembered that Chris and Linda had taken out a critical illness policy, and he asked whether Linda had submitted a claim. In amongst all the stress of dealing with the illness and treatment, they had completely forgotten that they had this cover. This situation is more common than you think, particularly if the insurance policy had been taken out many years before.

Their adviser helped them complete and submit the claim to the insurance company and the policy paid out a significant sum, allowing Chris and Linda to pay off their mortgage. They were very grateful to their adviser for suggesting the cover in the first place and even more grateful that they had the benefit of professional advice when they needed it most.