Family income benefit is a type of life insurance that pays out a tax-free regular income for a set amount of time period if you were to die.
When you buy a family income benefit policy, you choose how long you would like the cover to be in place. Often this ties in with your children’s or dependants ages so most choose a term that takes their youngest to 18 or 21, an age when they are likely to be more financially independent. If you die during this period, the policy will pay a regular income to your family for the remaining term. So, for example, if you take out cover for a 20-year period, and die after 8 years, the policy will pay an income for the next 12 years until the policy finishes.
This type of cover can provide valuable peace of mind that in the event of your death, your loved ones would still be able to cover any financial payments.
Remember that other types of life insurance are available, which would pay a lump sum rather than a monthly income upon death.
Family income benefit should not be confused with income protection cover, which pays a monthly income to replace part of your salary if you are unable to work due to accident or illness.
We are here to help, just some reasons why you might want to use our expert team
- It’s the first time you are considering family income benefit.
- You would like to know if you could get a better deal on your current insurance.
- You need to make some changes to your cover after a change of circumstances
- You want to add or remove some options from your policy