Family income benefit provides your family with a regular monthly income in the event you pass away.
The insurance is term-based and automatically terminates after the term of the insurance comes to an end.
This type of benefit does not pay off a lump sum but rather is distributed in the form of a monthly tax-free income, making sure the money is distributed generously but wisely.
Family Income Benefit works like a regular term life insurance and requires a monthly premium to be paid throughout the term. The insurance will pay off if you die within the term of the insurance and the insurers will continue to pay your family for the remainder of the insurance term.
For instance, if the term of the insurance is 25 years and you die about 8 years after the insurance was initiated, the insurance company will financially support your family for the next 17 years, after which the policy will terminate.
This type of insurance does not have a savings component, hence if you outlive the term of the insurance no premium return or money back is received.
Cost of the insurance
The cost of insurance usually depends on the following factors:
- Your age: the older you are, the higher the cost of the insurance
- Your health and family medical history: the premiums and costs are likely to be cheaper for individuals who are healthy and have no complicated medical history.
- Your lifestyle: the insurance is likely to be higher if you smoke or indulge in the use of drugs
- The term length and cover: the longer the term of the insurance or higher the cover amount, the costlier the insurance
Family Income Benefit is suitable for people who are the financial backbone of the family and who have dependants like a stay at home spouse or young children.
The insurance will make sure that your family is financially covered until your children are older and financially independent.
This type of insurance can also be suitable for those who want to make sure their family will receive a little something every month just to maintain their standard of living and can be used to pay off the household bills etc.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00