Family Income Benefit
How does family
income insurance work?
The monthly payment from a family income benefit policy is paid from when you die until the end of the policy term. Once the term ends, cover and any payments cease. So if you take out a 20-year policy and pass away five years into it, your family will receive a regular monthly income for the remaining 15 years. If you were to pass away 16 years into the policy, it will pay out for the remaining four years.
How much does it cost?
Monthly premiums are based on the amount of income chosen, how long you want it for, your age, health and lifestyle. You can typically choose a level income (where the monthly income payment remains the same), or pay more for it to rise by a set amount each year. This is where we will come in and assist.
How much cover would
I need and for how long?
This greatly depends on your own circumstances. For example, if you have a young family, you might want cover to be in place until your children are a certain age, using the income for everyday expenses or specific items such as school or university fees.
To decide how much cover you want, try to work out how much your family is likely to need each month. It’s a good idea to factor in inflation (the rise in the cost of living) when doing this calculation as this can impact the amount you’ll need in the future.
Find out more
Family income benefit is a type of life insurance policy known as term insurance, the policy lasts for a set time known as the term. A family income benefit policy will pay out a monthly tax-free income if you die or become Ill during the term, This monthly benefit will pay out until the policy matures.