Case Study: Robert & Sally
Background
Robert and Sally were married professionals. Robert worked as a social worker and Sally was a teacher. When their first child was born, they each took out Life Insurance with Critical Illness Cover to protect their growing family. Three years later, they welcomed a second child.
The Diagnosis
At the age of 53, Sally was diagnosed with breast cancer. She was too unwell to return to work, and Robert needed to take time off to care for her. With Sally’s income gone and Robert’s income reduced, they faced a significant financial strain.
Fortunately, Sally’s Critical Illness policy paid out a tax-free lump sum of £60,000.
The Outcome
The money allowed them to:
- Pay off their mortgage
- Cover household bills and daily expenses
- Manage additional costs associated with Sally’s treatment and hospital visits
Sadly, after undergoing a mastectomy and chemotherapy, Sally passed away two years later.
Because they also had Life Insurance, a further tax-free payment of £100,000 was made. This helped cover funeral costs and gave Robert space and time to grieve and support their children, now young adults, without added financial pressure.
Why It Mattered
Having protection in place gave Robert and Sally peace of mind. It meant they didn’t face the additional stress of financial instability while navigating illness, caregiving, and loss. They were able to focus on what mattered most, each other and their family.
Summary
Type of protection:
- Life Insurance
- Critical Illness Cover
(These are often taken out together as a comprehensive way to protect against both serious illness and death.)
Reasons for claim:
- Diagnosis of breast cancer
- Death
Payments received:
- £60,000 Critical Illness Cover (tax-free)
- £100,000 Life Insurance (tax-free)
Benefits and results:
- Mortgage paid off
- Ongoing bills and expenses covered
- Help with added care and treatment costs
- Time off work to care and later to grieve