Family income benefit is a type of life insurance that provides your loved ones with a fixed, tax-free income in the event of your death. It will provide financial support to your family in the event of your death or the diagnosis of a terminal illness.
How does family income benefit work?
A standard life insurance policy pays a lump sum when the insured person dies or is diagnosed with a terminal illness. In practice, this may not be the optimal solution. There is a risk that the money will be spent on the wrong things and the loved ones will find themselves in a difficult financial situation.
Family insurance protects against this situation. This is also a life insurance policy that pays out in the event of death or diagnosis. However, instead of a one-off payment of a larger amount, the money is paid out in smaller monthly instalments over a period defined in the policy.
How long should I be insured?
This is how family income benefit works. Let’s say you take out family insurance for a period of 30 years. If you died in the first year of the policy, the insurer would pay this amount for the full 30 years of the policy, and if you died in the 20th year, your family would receive monthly payments for the last 10 years. If you die after the policy expires, your loved ones would not receive any funds.
The length of the policy should be tailored to the life and financial situation of the person taking out the insurance. Our insurance advisors will help you choose the right policy, taking into account your age, current earnings, financial commitments, age of children and other relevant factors. With our service, you will be confident that you are adequately protecting your family’s future. With our service, you will be confident that you are adequately protecting your family’s future.
Please contact us today to discuss your protection needs or if you have any questions regarding Family income protection.