Arranging maintenance cover for a divorced client
- A 52-year-old divorced male with two children from his previous marriage
- He is a UK resident
- Maintenance payments to a sum of £9,250 per month
- Recommendation for a family income benefit policy on a single-life basis.
Client’s circumstances
A male client, who was a UK resident and has two children. He’s a non-smoker with some health issues.
Issues addressed
As part of his divorce agreement, the client agreed to maintenance payments of £9,250 per month to provide the following for the next 13 years (until his youngest child finished education):
- £4,250 per month to his ex-wife
- £3,000 per month toward mortgage payments
- £2,000 per month for children’s school fees
Financially, there’s a lot on his shoulders. He wanted to ensure that, if he were to die unexpectedly, his children and ex-wife would be cared for and there would be no claim against his estate in the event of death.
Tailored solution provided by John Lamb Hill Oldridge
We recommended a family income benefit policy on a single-life basis, with a monthly premium of £115. This would give him the peace of mind that his ex-wife and children would receive regular financial support at the same level as the maintenance payments, should anything happen.
This case shows how a family income benefit policy can be an effective solution for divorced clients who are making regular maintenance payments.