Family Income Benefit is another type of life insurance product but instead of receiving a lump sum on the death of the insured individual, the family receives a monthly tax-free income for the remaining term of the policy, which is typically written to state retirement age.
Most of our clients correctly have life insurance in place to cover their large financial debts such as their mortgage. But is clearing the mortgage debt sufficient for their financial future?
- How do they replace the lost income of the deceased?
- Can they still afford all of the other bills and outgoings on only one salary?
- Worst still, what monies would be available for the children if both parents died?
These are all important questions and typically without a family income benefit policy, the family would potentially struggle financially.
The main question for a family to consider is ‘can I afford all of the bills on my own, provide and bring up the children in line with the aspirations that we have for them?’
If the answer to this question is ‘No’ then you do need to consider a family income benefit policy.
What does this do for the family?
It guarantees a set income for the family to provide the financial support to meet their needs and plans for the future – it provides a form of financial security.
Do I need this policy?
We can set up a free initial consultation for you to complete a full review of your protection needs and identify any risks that you will need to protect. With family income benefit the real question is:
‘What does life look like if you don’t have it and the worst does happen?’
Make sure you have peace of mind if it does happen to you!
‘The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.