Family income benefit is a type of life insurance that provides a regular income for your loved ones if you die during the term of the plan. There is no cash in value, so if you stop making payments your cover will end.
Why you might want it
Household bills and other financial commitments need to be met and a loss of income could mean financial hardship - this is where family income benefit life insurance can help in terms of providing financial support.
How much cover should I get and for how long?
This will depend on your own circumstances. For example, if you have a young family, you might want cover to run until your children are grown up, using the income for everyday expenses or specific items such as school or university fees.
To decide how much cover you want, work out how much your family is likely to need every month. It’s a good idea to factor in inflation (the rise in the cost of living) when doing your calculations as this can impact the amount you’ll need in the future.
How much does family income benefit cost?
Monthly premiums are based on the amount of income you choose, how long you want it for, your age, health and lifestyle. You can typically choose a level income (where the monthly income payment remains the same), or pay more for it to rise by a set amount each year. But for this you usually need to seek professional financial advice.
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We all live different lives, with different needs. So our Life Insurance comes in three types. Level cover, decreasing cover and family income benefit.