Family income protection commonly known as family income benefit insurance is a form of term assurance.
Provides financial protection in the event of death for a set time period.
Provides a monthly income for your loved ones should the worst happen.
Flexibility to alter plan at many of life’s milestones
Option to include critical illness cover.
Option to cover single or joint lives.
Where it differs from term assurance is in the payout, family income protection pays out a tax-free monthly benefit to your family instead of the lump sum a term assurance plan would pay out should the worst happen. As the insurer pays a monthly income to the end of the term rather than a lump sum on death, a family income plan is often less expensive than term assurance.
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A family income benefit policy is cheaper than level term insurance. |
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Family income benefit insurance pays out a monthly benefit rather than a single lump sum. |
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A family income benefit policy is limited to paying out on death only (additional option to include critical illness cover in policy). |
What can family income protection be used for?
The monthly family income protection paid to your loved ones can be used to replace lost income, covering your monthly financial obligations such as mortgage/rent, credit card payments as well as everyday necessities. The amount of family income protection received will depend on the amount of cover you wish to take out at the start of the policy.Do I need family income protection?
What would be the financial impact on your family if you were to pass away? Would your partner have enough earnings and savings to cover your monthly financial obligations? If not, a then family income protection plan could be a solid way to protect their future.Factors to consider when buying family income benefit?
- How much monthly tax-free family income cover would your family require should you die?
- For how long to do you think they would need to receive the family income protection?
- Do you require the family income protection payments to be index-linked so they rise with inflation?
- Have you considered including a critical illness policy option with the family income protection. Providing financial protection if you were diagnosed with a critical illness.
If you require some guidance or a family income benefit quote, as insurance brokers dealing with insurance day in, day out, we are in a great position to help amd more than happy to have a chat around your needs.
