LifeQuotes4U RSS FeedLifeQuotes4U FacebookLifeQuotes4U Twitter
Call Us On 0800 002 9954
Or 0161 850 0286
Family Income Benefit
"Pays out a tax free regular income to your dependents if you were to die within the term of the policy... Usually taken out in addition to Level or Decreasing Term Assurance"
For a quote call 0800 002 9954
Why do people take out Family Income Benefit?

When considering life insurance, covering your mortgage is usually the first port of call, the minimum requirement. It's good to know that, should the worst happen, your family will be able to stay in the family home and not have to worry about mortgage payments in the future. But what will they do for income? Of course, your income has gone. How will your family earn an income and continue as before? This is what Family Income Benefit is designed for.

How much should you have and for how long?

A policy that covers the day-to-day living expenses is usually sufficient. Remember though, if you have a policy that clears the mortgage if you died, you wouldn't need to cover the monthly mortgage payment as it wouldn't exist anymore.

As you are looking to provide an income to your dependents if you're not around, a policy that pays an income until they become financial dependent is typical. Perhaps when the children leave school or University...

An example...

If your monthly living expenses are £1,200 and your youngest child is 4, then a Family Income Benefit policy with a sum assured of £1,200 per month over 18 years (at the end of University) may be appropriate.

For the above policy, for a non-smoking male aged 35, the premium would be less than £10 per month.

Affordable Cover

The cost of Family Income Benefit is surprising low. That's because the risk to the insurer gets smaller and smaller all the time; it's a bit like Decreasing Term Assurance. Imagine a policy that pays £1,000 per month with a term of 10 years. If the insured person were to die straight away the insurance company will have to pay the income for the next 10 years. However, if the person died in 9 years time, the company would only pay out £1,000 per month for one year.

In summary...

For people who want to provide an income for their dependents should they die prematurely.

In summary...

For someone that wants to cover their debts and/or earnings against being diagnosed with a critical illness.

LifeQuotes4U Limited is an appointed representative of Ikap Life Limited.
It is authorised and regulated by the Financial Conduct Authority / Financial Services Authority 591445