Family Income Benefit Life Insurance
Paying an Income
With family income benefit life insurance pays an income instead
of paying a lump sum, this offers your dependents a regular income
from the date of your premature death until the end of the policy
term.
This is one of the least expensive forms of cover and differs from
most other types in that it is designed to pay the benefit as an
income rather than a lump sum. In the event of a claim, income can
be paid monthly, quarterly or annually and under current rules the
income is tax-free.
To ensure that income payments keep pace with inflation you can
usually have them increased as inflation rises. It's also possible
to take a cash sum instead of the income option upon death.
Family income benefit can also include critical illness cover
which is designed to pay the selected income if you are diagnosed
with a critical illness within the chosen term.
Length of Term
It is a fixed term and you won't be able to increase your cover
or extend the term. If you become ill towards the end of the term
(duration of your policy) you might not be able to obtain further
cover.
Independent Advice
For more information on family income benefit insurance or for more tailored life insurance advice specific to your circumstances please use our free call back service provided by one of our partner firms.
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