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Family Income Benefit

What is Family Income Benefit?

Family Income benefit is a more budget friendly option than life insurance, but still a great option.  They might drive you mad sometimes, but this is the way of making sure they are looked after financially. Using Family Income Benefit is essentially like Life Insurance.  Instead of getting a lump sum you would receive a tax-free sum monthly should the person/people covered on the policy pass away.  This would continue for the rest of the term of the policy.  This cover is a cheaper option as over the course of the policy, the payout that the loved ones receive will decrease.   For example if you made  a claim in the first few years of having the Family Income benefit policy, it would pay out for longer than if you made the claim in the last few years that were covered, the insurers know this so it is priced accordingly.  Some insurers will also offer Critical Illness cover with this type of policy too.

Who needs Family Income Benefit?

Families do.  For some people managing a lump sum can be overwhelming, such as a large Life Insurance pay out.  By arranging a Family Income benefit policy, this would mean that should the person covered pass-away, their loved ones would receive a regular income for the rest of the term of the policy.  This could be up until you plan to retire or when the children become financially independent (we would say at least 25 for this)!   This type of policy can be set up on an individual basis or as joint policy for a couple, to pay out should one of the persons covered pass-away. We can get this type of policy placed into a trust too, so much like Life Insurance, the payments would avoid probate, meaning the proceeds are paid quicker.  If you want to make sure your loved ones can pay off the mortgage and receive a more substantial payment, we would advise you to stick with Life insurance which would give you that lump sum.


Why use Yellow Brolly?

There are so many different products and providers out there to choose from and it most definitely is not a case of cheaper the better.  We know our industry inside out.  Even if your attitude towards life insurance is that it is a complete waste of money, talk to us, we will be able to demonstrate to you how each provider works, what added benefits you will get, such as did you know many policies these days have counselling sessions, physiotherapy session included you don’t need to make a claim to be able to use them.  Fill in the form below or give us a call on 0114 4388585.

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