A policy that pays an Income to dependents on the death of the insured. The Income is payable for the remainder of the policy term. These policies are ideally suited suitable for people with families who wish to protect against the loss of Income provided by either or both parents.
Family income benefit is a policy that pays a monthly or annual tax free Income to dependents on the death of the insured. The Income is payable for the remainder of the policy term and is a very useful addition, to give families a guaranteed income for a set period.
Just like term assurance, family income benefit can make sure you have sufficient financial support in the case of death or terminal illness. Unlike term assurance, it provides a continuing monthly or annual income, rather than a one-off payment.
As it is paid monthly, it can be an easier, more reliable and better way to secure your family’s financial future than a one-off payment because:- It doesn’t require investment to generate an on-going income – It’s easier to manage and less likely to be ‘squandered’ – It can still be converted into a one-off payment if that is preferred
These policies are ideally suited for people with families who wish to protect against the loss of Income provided by either or both parents and is the most cost effective way to buy life insurance, because the premiums reflect that the potential payout decreases the further through the policy you get.
Critical Illness cover can be added to the policy and would produce an income in the event of certain serious illnesses being diagnosed.