Family Income Benefit
Family Income Benefit is similar to term assurance but instead of a lump sum, it pays out a regular tax free monthly benefit* when the person covered dies or is diagnosed with a terminal illness during the term of the cover.
Family Income Benefit can be used to help to provide financial protection for the family of the person covered from the date of death/terminal illness until the end of the chosen term.
The amount of cover you receive is in your hands. Once you have calculated what you estimate your monthly expenses to be you simply select the amount of cover based on these requirements and then select the term for which you want the cover to last. You can also cover another person or opt for joint cover. The premiums for this cover are very reasonable and it is significantly cheaper than term assurance.
An example quote for Family Income Benefit is as follows;
A female aged 25 has recently had a child and wishes to take out Family Income Benefit to cover her expenses if she were to die or become terminally ill.
Her expenses are £1,000** per month and she wishes to take out the cover for an 18 year term (until her child reaches independence) which will result in the total initial cover being £216,000. Should a claim be made, the family would receive a regular tax free monthly payment of £1,000 for the remainder of the term.
This cover can be obtained for premiums of just £6 per month.
If you are interested in taking out Family Income Benefit contact us at EFPG to arrange an appointment with one of our professional advisers.
*If your circumstances were to change you can request the benefit to be paid in the form of a lump sum. However, this figure will not equate to the total benefit you would be eligible to receive if you were to select the regular monthly payments.
**Should you chose too, you can select an increasing annual benefit which can help protect against inflation. On this basis the benefit receivable will increase by 5% annually on the anniversary of the cover start date. Upon making a claim the benefit will continue to increase by 5% annually until the end of the term.