If you pass away, Family Income Benefit pays out a regular tax-free monthly income to your loved ones, to replace the loss of your income and help relieve the stresses to your family of paying the bills.
Family Income Benefit cover works on a term basis. This means that you choose the term that you would like the policy to run for at outset, for example, until the age that you expect to retire. If you pass away during this period, the policy will pay out until the end of the payment period you chose, which could be the end of the term of the policy.
Do you need Family Income Benefit Cover?
You should consider family income benefit if:
· Your family would be unable to cover the outgoings if you were to pass away
· If you receive maintenance payments from an ex-spouse as part of a divorce and are dependent on these, you may wish to cover these if your ex-spouse was to pass away
· If you planned to send your child to private school, would the lack of your income prevent this from happening?
· If you are a single parent, have you thought about how the guardians for your children will cope financially taking on the responsibility of your child in the event of your death?