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.