What is Family Income Benefit ?
A Family Income Benefit policy is designed to pay out a regular monthly income to your family on your death during the term of the plan. This income continues on claim but for the remaining term of the policy. Income can be payable monthly, quarterly or annually or sometimes commuted to a lump sum if required.
In essence a Family Income Benefit is therefore a form of decreasing term assurance in that you select the date when benefits are to cease eg. when children are no longer dependant or go to University, and you select the amount of tax free cash you would like your dependents to receive.
Family Income Benefit Insurance - Summary
So to make sure you buy the right amount of Family Income Benefit cover, with the right terms and conditions, you should consider getting some life assurance advice not just getting the cheapest quote for a random amount. The correct Family Income Benefit Advice means the adviser assesses what your family would need, and compares Life Insurance Providers for the Family Income Benefit cover that suits you best.
Always answer questions as best you can and disclose any existing medical conditions when asked. If you don't give the full facts, you could invalidate your Family Income Benefit Insurance Policy and the insurance company won't pay out.
Family Income Benefit Life Insurance - Policy Highlights
When looking for Income Life Insurance Policy note premiums shown are usually fixed for the whole term of the Family Income Benefit Insurance Policy. There are also contracts where premiums are reviewable, after a certain period, usually 5 years. So check - How flexible is the contract for your needs? Can you reduce or increase cover easily as your circumstances change? Are there extra charges for doing this? Does cover stop immediately if you miss a payment or is there a period of grace?
By paying extra, you can usually include a waiver of premium. It pays the premiums if you can't work because of a long-term illness so that your cover is not interrupted.
What does my Family Income Benefit Insurance Policy Cost ?
This depends on several factors, such as the amount of cover you want and the length of the term. Naturally, it's also based on the likelihood of your insurer having to pay out: if you're a smoker and do a dangerous job, you'll pay more than a non-smoking office worker for a Family Income Benefit Quote. Always compare what's covered by a policy, not just the price. Some might be cheaper than others, but they may not offer the same level of protection.
" I moved employers. My new company didn't offer any lifecover. I now wished to find a suitable family income benefit insurance policy for me & my family "
"I was concerned if I died we had a regular income coming in to benefit the family, rather than just a lump sum to invest - as interest rates are so low currently. It makes sense to discuss your insurance options with an Insurance Broker"
" They can help by recommending the best options that's right for your personal situation & health "