Family Income Benefit Life Insurance

Family income benefit is term life insurance that will provide a regular tax free income as opposed to the lump sum pay out that is associated with level term and mortgage protection.

The guaranteed regular income that is  payable means that you can ensure that your family or dependents will be protected against the loss of income associated with the loss of a family member for a set amount of years or term of the policy.

The use of a family income benefit policy may be suitable for  younger families who wish to ensure that if the unexpected were to happen the loss of earnings would not be as much of a financial burden maybe the term of the insurance coinciding  with children no longer being dependent.

Family income benefit can be arranged on a single life or joint life basis and can be index linked which will increase the benefit payable on a yearly basis to ensure that the spending power of the benefit is not eroded over time due to inflation, the index linking option will also mean that the monthly premiums payable will also increase even if guaranteed premiums are chosen. Other options are  using a life or earlier critical illness policy to enable a payment to be made if you contract an earlier critical illness or waiver of premium which will continue to make payments on your behalf if you are unable  through ill health to continue to pay the regular premium.

The cost of family income benefit can prove to be a cost effective way of providing life or critical illness insurance during the first years of the policy i.e a 20 year policy that provides a yearly benefit of 15,000 a year could provide a potential total benefit pay out of 300,000, however a claim payable in the later stages of cover may only provide a small total potential benefit and offer less value.

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