What is family income benefit and how does it work?
Family Income Benefit is a type of life insurance for that is aimed at parents and families. The key difference between Family Income Benefit policy and a term life insurance policy is your loved ones receive a tax-free monthly income instead of a lump sum.
If you die, the policy will pay out a regular, tax-free income to a specified date to replace your lost income. Because it works in this way, it helps to make budgeting for the remaining family easier by replacing your income that has become lost.
If you take out a 20-year term Family Income Benefit policy and a claim is made 10 years into it, it will then pay the monthly income for the next 10 years. If the claim is made 15 years into the policy term, the income would continue for 5 years.
You decide how much of your income you would like to be covered, but with the experience of Aspire Financial Services you are able to make an advised choice
Suiting families with young children it provides a regular income to cover the cost of living expenses when an income has been lost due to death. As the monthly premiums are lower than other life insurance policies it makes a great choice to protect your family when you cannot.
It is often used in conjunction with a Term Life Policy: For example – When covering your mortgage with a lump sum Life Policy and replacing the lost regular income with Family Income Benefit, you guarantee your family a fixed income each month.
If you would like advice on the most appropriate type of policy to suit your needs and want to learn about the ‘totally protected mortgage’ contact Aspire Financial Services and book your free 30-minute consultation.