Today we will look at Family Income Benefit insurance.
So, how does it work?
Family income benefit is a type of life insurance that provides a regular income for your loved ones if you die during the term of the plan. The monthly pay-out from a family income benefit policy is tax-free and is paid from when you die until the end of the term. Once the term ends, cover and any payments stop. So, if you take out a 20-year policy and die five years into it, your family will receive a regular monthly income for the remaining 15 years. If you were to die 16 years into the policy, it will pay out for the remaining four years.
Is Family Income Benefit for me?
Most families rely on at least one regular monthly salary to cover their household spending. Household bills and other financial commitments need to be met and a loss of income could mean financial hardship – this is where family income benefit life insurance can help in terms of providing financial support.
Why choose Family Income Benefit?
A family income benefit policy can help your dependents continue to cover their everyday outgoings should you die during the policy term. It won’t provide a large, lump sum pay-out, but it can help to meet essential expenses, ensuring your family can continue living as normally as possible following your death. Because the pay-outs are smaller and spread over long time periods, the premiums for family income benefit policies can be cheaper than those for other life insurance policies.
*Terms and conditions apply, subject to underwriting. Policy will lapse if payments are missed*