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Family Income Benefit


Family Income Benefit is an innovative type of life assurance designed to give your dependants a tax free, monthly income in the event of your death.

Who should consider Family Income Benefit?

This policy is suitable for couples who rely on each other’s income and who have young families or have older financially dependent children.

Even if you are single and have no financial dependents, you may want to provide an additional financial security for your parents in their later life.

The main difference between Family Income Benefit compared to Term Assurance or Mortgage Life Assurance is that this policy rather than pay out a lump sum on your death, will pay out a monthly tax free income for the term of the policy.

Term Assurance or Mortgage Life Assurance is designed to pay off your mortgage, but if the worse happens have you considered how your dependents will manage without your income after your death.

How does Family Income Benefit work?

We will review your current income and expenditure now and assess your income requirements for the future. We will then recommend an annual sum assured; this is amount the policy will pay out each year for the remainder of the term. Payments can be made monthly and are tax free.

Keeping pace with inflation

Let’s assume that you need a Family Income Benefit Policy that will pay your financial dependants £3,000 a month in today’s money. If your family made a claim 20 years later, would £3,000 be enough?

You can index link your policy and premiums, from the outset, you can link the sum assured to the Retail Price Index, so as inflation increases, the sum assured increases, and this guarantees that your policy retains its value.

Can my dependants choose to take a Capital Sum?

Yes, if your dependents decide that a capital sum would be better that receiving a monthly income, they can request that the policy is changed after your death.

Are the monthly premiums more expensive?

Compared to Level Term Assurance and Mortgage Life Assurance, the monthly premiums for Family Income Benefit are generally less expensive.

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