A guide to Family Income Benefit
What is Family Income Benefit?
Family Income Benefit is a life insurance policy with a
difference. Life insurance policies usually promise to pay out a
lump sum should the policy holder die, whereas Family Income
Benefit will pay your family monthly tax free payments for a length
of time of your choice.
Why choose Family Income Benefit?
In the current economic climate we all want to feel safe in the
knowledge that should the worst happen to us, our family will not
struggle financially. Family Income Benefit pays out if the policy
holder dies or is diagnosed as terminally ill, so your family will
be financially secure if you can no longer provide for them.
If you are a divorced parent who offers financial support to
your children, Family Income Benefit can ensure that these payments
continue should you die or be diagnosed as terminally ill.
If you pay for the care of an elderly relative, Family Income
Benefit can make sure these payments continue should you die or be
diagnosed as terminally ill.
As Family Income Benefit pays out monthly, its premiums are
often cheaper than most life insurance policies – so it could be
seen as a more affordable way of ensuring your family receives an
inheritance.
What can I choose?
Family Income Benefit offers many options: you can choose the
amount of benefit your family will receive each month, and also the
number of years the benefit will continue to pay out for.
Level monthly benefit or increasing monthly
benefit:
You can also decide whether you’d like the monthly benefit to
increase on a yearly basis. This means that the amount will remain
sufficient in spite of inflation rates.
Joint cover
You can choose to have single or joint cover if you’d like to.
So you and your partner are covered – this means that your family
receive the benefit should either of you die or be diagnosed as
terminally ill. It is worth remembering though, that the benefit
will only pay out once – after we have paid the benefits for one of
the people covered, joint cover stops.
Check out this YouTube video,
answering 4 common questions on Life
Insurance.
Back to the Family Income Benefit
policy