Then place the image (I am assuming that if has been clipped in Photoshop and doessn't have a background) and mask it with the duplicate shape. Add anchor points to fix the bottom curvature. THen just make the mask larger at the top, so that it contains the complete figure.
Copy the ellipse and paste in front (Ctrl + F). Select the image and the ellipse in front, create clipping mask (Ctrl + 7). Edit the clipping path to include the head/upper body/whatever else needs to extend past the edge of the ellipse.