Family Income Benefit

Rather than providing a lump sum should you die, family income benefit provides a regular, tax-free, monthly income for you and your dependants - from the time of the claim to the end of the plan term.

For example: Plan Term - 20 years. Time claim made - after 16 years. Benefits paid - for the remaining 4 years. This is why family income benefit often costs less than life insurance.

Family income benefit is particularly attractive to those who like to know they have a regular monthly income and would rather not have to worry about complex investment decisions to make the most of a lump sum payout.

In both plans you may incorporate:

Waiver of Premium

This option ensures that premiums continue to be paid in the event that you are unable to work as a result of accident or sickness. This benefit commences after a specified period of absence, referred to as the deferred period.

Terminal Illness Benefit

In the event of you being diagnosed as suffering from a terminal illness i.e. one where the expectation of life is less than twelve months the sum assured under the contract will become payable.

I have recommended that you purchase this benefit and you have agreed to incorporate it within the contract.

You may also incorporate the health insurance benefits as detailed below into a life assurance plan.

It is essential that you take professional advice prior to proceeding with any of the solutions outlined within the guides.

These guides do not provide individual tailored investment advice and are for guidance only. You should not act independently on the areas covered here but should seek professional independent financial advice. These guides represent our understanding of law and HM Revenue & Customs practice as at the date of publication. We cannot assume legal responsibility for any errors or omissions they might contain. Levels and bases of, and reliefs from taxation are currently those applying or proposed and are subject to change; their value depends on individual circumstances of the investor.