Family Income Benefit Cover

The Family Income Benefit Cover is an insurance policy that provides cover on death if you were to die during the term of the policy. It gives you great protection financially because in the case of death, your family would not get a lump sum but would get fixed monthly payments which are free of tax. This is especially good for young couples and families who might not be able to pay out huge premiums but where the earning member still wants to feel secure that if they were to die, the family would get some money every month to get by. It also ensures that a family does not have to worry its head around how to invest a lump sum payment so they get a fixed amount to spend every month. The payout will be for the term of the cover so if you were to take one for 15 years and death occurs after 5 years, your family will get a fixed amount every month for 10 years. You need to work out the amount you think your family could manage on and then pay the premiums for that accordingly.

This is a great way for young families because when faced with the trauma of losing the breadwinner of the family, the last thing a partner and children will want to do is worry about money. This policy helps them to get by till the children are old enough to support themselves. Those crucial years are free of stress financially. The ideal term would be for a number of years when your youngest child turns 18 – though some like to keep it on until they are 21.

Types of life insurance

  • Single life insurance

    Life insurance to cover the life of one person. But what else is there to know?

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  • Joint life insurance

    A joint life insurance policy to cover two people (cohabiting, in a relationship etc).

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  • Level term life insurance

    A life insurance policy that pays out the same throughout the policy term.

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  • Decreasing term life insurance

    This cover decreases throughout the life of the policy, usually in line with a mortgage.

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  • Critical illness cover

    You don't just have to get cover for your life - consider what would happen if you were to become seriously ill.

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  • Life insurance with critical illness cover

    A combined insurance policy that pays out upon death or if you become very ill.

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  • Mortgage protection cover

    Not to be confused with mortgage PPI, this life insurance would help to pay a mortgage off.

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  • Mortgage protection cover with critical illness cover

    Similar to mortgage protection life insurance but also pays out if you develop a critical illness.

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  • Family income benefit cover

    Instead of a lump sum this would pay a fixed monthly amount to your family if you pass away.

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  • Convertible term life insurance

    A flexible type of life insurance; you can switch it to a different life insurance variation later in the term.

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  • Guaranteed life insurance

    No medical required and this type of policy is available to anyone and everyone, regardless of circumstances.

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  • Reviewable life insurance

    Every few years this policy can be "reviewed" to see if the level of cover that you have chosen is still appropriate.

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Still need to learn more about Life Insurance?

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