Family Income Benefit
One of the best things about insurance is that it helps you prepare for the unexpected. This is true about all forms of insurance and it is particularly true about family income benefit insurance. The family income benefit policy is a form of life insurance that is generally taken out by parents to protect children and dependents in case the policy holder dies while his or her dependents are still too young to take care of themselves. This policy is beneficial in the sense that it pays an income to the dependents of the insured person.
Like every other insurance policy, the family income benefit has specific regulations. The premium that you have to pay depends on a number of factors. These factors include your age, the state of your health and how much cover you need. Other factors that affect the premium include the terms of the policy and perhaps your profession. If you work in a high-risk profession, the premium could increase. There is no point in trying to figure out how low or how high the premium is likely to be. Get in touch with us and you will get all the information you need. Most of our insurers offer this type of policy these days as it is one of the main reasons that people but life cover these days.
This policy has many advantages and there are special benefits for families on low income. For a start, the premium is quite low when comparing to a level term policy for the same sum assured. This makes the policy affordable to families in the low income category. Another advantage is that the compensation is not paid in one lump sum. It is paid annually, monthly or quarterly. This means that the beneficiaries of this policy will have a regular income to help them cope with life in the absence of their parents. Again the income from this policy is tax-free and this means that the beneficiaries get more value from the policy. It is also important to add that the beneficiaries of this policy start receiving the income after the death of this policy holder. It is also possible to combine this policy with another one for best results. For instance, a critical illness policy can be added to the family income benefit policy. In this case, the policy holder does not have to die before the dependents begin to enjoy the benefits from the critical illness policy.
One way to ensure that children or dependents get the most value from this policy is for the two parents to take out two separate policies. The advantage of this move is that two separate policies offer much better value for money. It does not cost that much to pay the insurance premium for two separate family income benefit policies. The premium for the two policies is only slightly higher than the premium for one policy but the payout from the two policies is about double the payout from one policy. In effect, when you have two of these policies you are likely to receive a double payout without paying a double premium for both policies. This is a wonderful advantage and it makes a lot of sense especially when you consider the two benefits could be paid to your children’s “legal guardians” in the event of your both dying before the children are able to stand on their own two feet financially.
If you are considering taking out a family income benefit policy, you can begin the process now by giving us a call. The perfect policy for you may be just a few minutes away. We aim to find the right company and level of cover, and you can get this policy to protect your children.