Family Income Benefit
Family Income Benefit in Thanet, Kent
What is Family Income Benefit?
Family income benefit is a form of life insurance that provides a regular income for your family should you die during the term of the policy.
Most families rely on at least one regular income and you should consider how you would cope if that salary ended.
Unlike term life assurance, which pays a lump sum on death during the term of the policy, family income benefit pays out a tax-free sum for however many years you want the policy to run.
For example, if you take out a 15-year policy and pass away 5 years after it starts, then the policy will pay out for 10 years. Like simple term assurance, there is no surrender value.
There are two principle benefits of family income benefit over term assurance:
- It takes the worry away from your family of how to invest the money should they want the proceeds of a life policy to provide a safety net over time.
- It helps your family budget for the years ahead.
The payments can be fixed at the outset or they could increase each year by a fixed amount or the rate of inflation- the choice is yours! You also decide on the term, say, until your children leave home or university?
A number of insurance companies offer this policy and the terms vary between them. It is important to understand the differences. This is where Thanet Associates can help, not only explaining the pros and cons of each policy but ensuring you are offered the most suitable one for you.
Critical illness cover can be included which means that the policy will pay out on the earlier of the insured dying or becoming critically ill. This provides additional peace of mind during an extremely challenging time for your family.
The insurance policy will end if premiums are not paid on the policy.