Family Income Benefit

This is the lowest cost of all life assurance policies but is often overlooked in favour of term assurance.

Rather than pay a lump sum benefit Family Income Benefit pays a monthly income from the time a claim is made and until the policy term ends. For example, a claim made 5 years into a 20 years term family income benefit policy would pay benefits for 15 years. If a claim was made after 10 years into the 20 year term then the policy would pay for 10 years.

Benefits can remain level or increase with inflation.

Policies can be arranged on a single or joint life basis but only one claim can be made. For example, following the death of an insured person benefits would commence but if the second person insured also died the policy would not pay any additional benefits.

It is possible to commute the monthly benefit for a lump sum.

This policy never attains a cash value.

Why consider Family Income Benefit?

This type of policy is simple and low cost. It is suitable for people who require a certain level of income following the death of the life assured but who do not want the responsibility of investing a lump sum in order to produce an income or take the risk that the income could fluctuate.

This type of policy is ideal for ensuring that income agreed following a divorce or separation will continue to be paid should the provider of that income die or to cover the cost of ongoing school fees until your child completes their full time education.