What is family income benefit?
Family income benefit is a type of insurance that will provide your family with set income for a period of time after you pass away. Preparing for the worst eventuality is never the easiest thing to undertake. If you feel that family income benefit is something which you would find beneficial, contact one of our professional and well-trained advisors who will walk you through all of the policies and tailor it to you and your families needs.
Why choose Fluent Money for insurance?
- A monthly payment which will help your family for a set amount after bereavement
- Designed to cover living expenses and it tailored to individual needs
- Policies for as little as £5
- Personal advice based on your family and and financial circumstance
- Well trained expert advisors can talk you through all of the intricacies
With family income benefit, the insurer will only pay out a claim for the term of the policy. As an example, a claimants family holds a policy for a 20 year period, that will pay a family £1,000 every month for 20 years. If you a person passes on within the first month of the policy, the policy holders family will receive £1,000 for every month of the whole 20 years. Whereas if a family makes a claim 15 years into the policy, they will only receive payments for 5 years.
Both types of insurance provide financial support to families after they have experienced bereavement. The main difference is the method of payment and frequency. Life insurance is normally paid once to the family and is designed as a golden parachute to help them overcome large financial burdens like payment of mortgage, debts and to ensure financial security in the future. Family income benefit meanamilies receive a fixed amount each month based on the estimate which was made when the policy was taken, however the period of how long they receive payments is based on the policy.
If you and your partner want to take out a joint family income benefit policy, we can find an option for you. Often, this type of cover is cheaper than taking out two separate policies. However, there will only be a pay out if one policy holder dies, not both.
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Have a question about family income benefit?
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