Case Study: Jake & Sharon Richmond
Background
Jake was just 13 when his dad died of a heart attack at 42. Sharon was in her early twenties when she lost her mum to a brain tumour. Neither of their parents had life insurance, and both families experienced significant financial hardship after their deaths.
As adults, Jake worked as a self-employed ceramic tile installer and Sharon was in an office role. When they became parents, they were determined not to let history repeat itself. With a 2-year-old son and Jake’s two children from a previous marriage (aged 9 and 16), they wanted to be sure their family would be protected financially if the worst happened.
The Policy
In November 2008, Jake and Sharon took out a joint life insurance policy with critical illness cover through Bright Grey (now part of Royal London). Their level premium was £220 per month.
The Diagnosis
Just five months later, in April 2009, Sharon woke up numb from the waist down. Initially, she put it down to a trapped nerve from moving furniture during a home renovation. A month later, she woke up blind. Her vision eventually returned in one eye, but with the other, she could only see shadows.
After multiple hospital visits and tests, Sharon was referred to a specialist, who diagnosed her with Multiple Sclerosis (MS) at the age of 40.
Making a Claim
Their financial adviser contacted Bright Grey and submitted a critical illness claim. Since the policy had only been in place for six months, the insurer reviewed the timeline of symptoms before approving the claim. Once accepted, Sharon received a tax-free payment of £180,000.
The Outcome
This payment allowed them to:
- Pay off their mortgage
- Clear outstanding debts
- Cover day-to-day expenses during a difficult time
- Afford additional help and childcare while Jake took time off work to care for Sharon and their young son
Bright Grey also arranged additional professional support for Sharon, included as part of their policy’s added benefits.
Summary
Type of protection:
- Joint Life Insurance with Critical Illness Cover
(Life cover pays out upon death; Critical Illness Cover pays out upon diagnosis of a serious condition)
Reason for claim:
- Diagnosis of MS
Payment received:
- £180,000 (tax-free)
Benefits and results:
- Mortgage paid off
- Financial support during time off work
- Help with increased care needs and childcare
- Professional wellbeing support included in the policy