Family income Benefit

As with life insurance, family income benefit can be very cost-effective, but the cost of premiums can vary between insurers.

Therefore, to ensure you receive the best possible solution for your needs it is important to compare quotes.

At Reassured, our award-winning FCA regulated team can compare family income benefit with life insurance to provide you with all the information you need to make an informed decision.

Before purchasing family income benefit, you need to establish how much income your dependants require each year.

Ideally, this would cover all family living costs, not just now but also in the future.

Then you need to decide how long you require the cover to last, (known as the ‘term‘).

Often policyholders ensure the term runs until their children are financially independent.

Normally this tax-free income is paid monthly, although it can be paid quarterly.

These payments can help with the long-term budgeting of day-to-day living expenses.

An advantage of family income benefit is it does not require beneficiaries to budget, manage or invest a large lump sum.

This can involve making complicated investment decisions, that incur fees/taxes, at a time when you are grieving.

To ensure your family income benefit payments meet your dependant’s needs, both now and in the future, it may be a good idea to link it to indexation.

Although income protection and family income benefit sound similar, they are two very different policies.

A family income benefit policy only pays out if you pass away during the policy term.

Whereas income protection protects your income whilst you are alive, but unable to work due to an illness or accident.

Please note, we do not currently sell income protection at Reassured, although we do sell family income benefit as well as other life insurance policies.

As with most forms of life insurance, family income benefit includes terminal illness cover as standard.

This means that you can make an early claim if you are diagnosed with a terminal illness and predicted to pass away within 12 months.

Your family will begin receiving monthly tax-free payments from point of claim until the expiration of your policy.

These payments could prove invaluable in helping with the burden of living costs during a very difficult time.

Terminal illness cover comes with all life insurance policies arranged through Reassured.

When you take out family income benefit, you have a choice of guaranteed or reviewable premiums.

If you choose a guaranteed premium, your insurer will never increase the monthly cost.

Whereas reviewable premiums normally cost less initially, but your insurer has the power to increase the cost during the term.

At Reassured all life insurance policies come with guaranteed premiums, ensuring you know exactly what you have to pay each month.

The cost of your premiums is calculated in the same manner as other forms of life insurance; based on the likelihood of a claim.

Factors such as your age, health and lifestyle will be taken into account and the cost of your premium reflects the level of risk you pose.

As with all forms of life insurance, cost can differ significantly between insurers.

As a result, it is essential to compare multiple quotes to ensure you receive the most cost-effective cover.

At Reassured we do all of the hard work for you, comparing quotes from the top insurers to secure the right cover, at the best price.

We can also unpick any jargon you do not understand, as well as compare the cost of different policy types.

And our award-winning FCA registered life insurance broker service can provide you with a quote completely free.