Private Individuals
In September 2004 we were introduced to a young couple by a general insurance broker contact as they wished to undertake a full financial health check in light of the recent birth of their first child.

At our first meeting, we outlined the process that we would follow, which would be a full no cost, no obligation analysis of their current position, highlighting the key areas to consider, such as family protection, retirement planning, investment opportunities and mortgage advice.

Within our first meeting we completed a full financial questionnaire, in which we collated full details of their current circumstances and existing plans in order to gather a greater understanding of their financial position. We also discussed at some length, the client’s immediate and longer term aspirations.

During this initial meeting it became apparent their main concerns were the financial protection of their baby daughter until she reaches financial independence and planning for retirement at age 55 for both of them. The clients had some life insurance in respect of their mortgage but this did not provide enough cover to protect against loss of future income in the event of death or illness.

The gentleman also had one small pension with an insurance company who had closed its funds to new business and which had also provided extremely poor returns over the past four years. His partner had no pension provision whatsoever. The client’s provided a letter of authority to enable us to collate up to date information on his existing pension plan and it was agreed that we would report back with our recommendation regarding the appropriate course of action with the existing plan and with regard to future planning.

Our Sales Support and Research Department collated up to date details of the client’s existing pension plan and life assurance plans and produced a report highlighting our findings and recommendations, which were presented by the adviser at a second meeting.

We recommended that the existing life insurance plan be replaced as more competitive premiums were now available. The saving on this plan was used to help towards the cost of establishing a joint life, family income plan which would provide a regular tax free income over a term of 22 years in the event of the death of either client, which should provide adequate life insurance protection until their daughter is financially independent.

We also recommended that both clients establish income protection plans to provide cover in the event of either of them being unable to work for a prolonged period due to accident or illness. Importantly, we also highlighted the fact that neither had a Will in existence and the problems this could cause, in view of the current intestate rules. We recommended a local Solicitor and suggested that this situation be remedied as a matter of urgency.

We recommended that the client transfer his existing pension fund to a new provider offering a more competitive charging structure and a history of first class fund performance and suggested that they both commence a regular contribution of £50 per month into a personal pension plan with the same provider.

We also established an annual review procedure to enable us to continue to monitor ongoing performance and any changes in circumstance, agreeing a fee for each annual review.

The result of the review is that the clients now have a more competitively charged, better performing portfolio of protection and pension plans and have comfort in the knowledge that their situation will be reappraised on an annual basis.