Protect the future you’re building with a Family Income Benefit policy to look after your loved ones. Policies can extend for up to 30 years because your family’s future is in your hands now.
A family income benefit policy is a type of term life insurance policy. Family income benefit pays a regular fixed amount instead.
The payments are monthly and tax-free. The payments would start when you pass away and would continue until the end of the policy.
Family income benefit provides a reassuring level of stable income for your family for up to 30 years.
Family income benefit can be an attractive option because of the stability it offers. Instead of the stress of a large lump sum payment followed by a big drop-off in income, family income benefit cover provides your loved ones with a steady income for years.
Family life insurance, such as this income benefit, can help your family remain financially independent even after you pass away. Income protection insurance features guaranteed premiums, regular tax free income, and gives your family financial security even after a tragedy.
A family income benefit policy is like term life policies because they both have a fixed payout amount and a fixed term. The difference is in the payout method. Term life insurance policies pay out a lump sum to the beneficiaries. Family income cover provides a regular income for the duration of the policy term.
As an example, here’s what might happen with these two kinds of life insurance policies:
Another way these policies are alike is how the insurer decides the cost. Risk factors such as age, lifestyle, and health are all considered. It is similar to standard life insurance regarding choosing term and level of cover. Factors that affect the cost are all the same too i.e. health and lifestyle, BMI and smoking status etc.
Generally, no. Your family should receive a tax free monthly income for the length of the policy. However, tax liabilities can form when an estate is larger than £325,000. To avoid taxes, many people write their life insurance policies into trust.
Most policies featured fixed monthly premiums. However, some policies can include reviewable premiums, so it is good to check with your insurer about your specific policy.
Most policies featured fixed monthly premiums. However, some policies can include reviewable premiums, so it is good to check with your insurer about your specific policy.
Yes. Most solicitors who handle estate planning and insurance can write up the necessary documents for you. This simple legal arrangement can save your family some legal hassles and avoid any delay in releasing funds from probate.
Yes, you can have a family income benefit policy as an individual or on a joint basis. Insurance providers with joint life policies pay only one set of benefits after the first person dies, provided it is in the term of the policy.
You can arrange an insurance policy that includes critical illness cover. These combined policies would help your family receive a regular monthly sum in the event of a serious illness. This may cause higher premiums, though.
We’re here to help you find the right family income benefit insurance for your individual circumstances. When you’re ready, fill in the form with some information. One of our friendly experts will be in touch to help answer any questions you have.
Alternatively, you can call us directly. We will provide you all the facts to any of the questions you have, go through the quotes with you, and get you the best insurance cover for your budget.
