Family Income Benefit – In brief: This life insurance policy will pay a monthly income to help with the bills should you pass away.
How does it work?
You choose the amount and type of cover you require and how long you want it to last (policy term). The term of cover for Family Income Benefit would normally last until your youngest child reaches the age of 18 or 21. If you die during the policy term the provider will pay an income every month right up until the end of the policy term selected. Some providers will also pay out on this policy if you are diagnosed with a Terminal Illness and not expected to live more than 12 months.
The additional income can be used to help cover any additional monthly costs or bills, giving your family peace of mind and better financial security after you are gone.
Policies can start from as little as £5 per month
This is a great policy for families, especially people with younger children. In my opinion, it is not common knowledge that this type of policy even exists and once I have explained the benefits to clients, they will normally take this in addition to other protection policies being arranged. This is because it is a relatively cheap insurance policy, when you consider the amount of cover achievable, in addition to the peace of mind it provides.
It is aimed at providing a monthly amount of money (to be determined based on your circumstances) to cover potential additional lifestyle costs, should one or both parents die (you can also take it with critical illness cover but it can increase the cost significantly, depending on your circumstances).
What extra costs may arise following the loss of a loved one?
Additional childcare costs are a good example, if one parent were to pass away, who will look after the child(ren) whilst the surviving parent is at work earning enough to still maintain the household.
Education fees, if you are already paying school fees you will probably want them to continue their education at the same school. The loss of a partner’s income due to death could stop this.
If you would like to know more then get in touch and I will be able to explain how this can benefit you and your family.
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