Family Income Benefit is a special form of decreasing term assurance that is intended to provide an income for a family on the death of the life assured. The benefit is payable from the death of the life assured until the end of the policy term.
Examples of Use
Individuals who have dependants requiring replacement of income rather than a lump sum.
Advantages
Income is tax-free and paid monthly.
Beneficiaries may opt for a capital sum rather than income after the life assured has died.
To offset the effects of inflation it may be possible to arrange policies with an increasing or escalating benefit.
Disadvantages
As for all term assurance contracts, no surrender value
Points of Interest
Suitable for those who require cover at low cost.
Usually set up under Trust or on what is known as a life of another basis. This ensures that for most individuals the benefits are in the right hands at the right time.
Arrangements including critical illness can be considered. This will pay out sum assured if the life assured has a terminal illness with a predetermined number of months to live.
Because this is a form of decreasing term assurance, medical limits and underwriting may be slightly more generous than for level term.
Your home may be repossessed if you do not keep up the repayments on your mortgage or any other debt secured on it. To
understand the features and risks of lifetime mortgages and home reversion plans ask us for a personalised illustration.
My Personal Finances Limited is an appointed representative of
Accord Consultancy Limited which is authorised and regulated by the Financial Services Authority.
