For peace of mind, many people opt for a type of life insurance called family income benefit, which helps their loved ones to deal with the financial problems that they would go through if you were to die unexpectedly.

Family income benefit-what is it and how does it work?

Family income benefit is a type of term life insurance, which lasts for a predetermined time known as the term. A family income benefit policy will pay out a monthly tax-free income if you die during the term, until the policy ends. The monthly payout from a family income benefit policy is paid from when you die until the end of the term. Once the term ends, cover and any payments stop. E.g., if you take a 20-year policy and die five years into it, your family will receive a regular monthly income for the remaining 15 years.

A loss of income could mean financial hardship – this is where family income benefit life insurance can help in terms of providing financial support. When talking about the monthly premiums for this policy, it is based on the amount of income you choose, how long you want it for, your age, health, and lifestyle. You can either choose a level income (where the monthly income payment remains the same), or pay more for it to rise by a set amount each year.

How much cover should I get and for how long?

This will depend on your circumstances. You need to calculate your family’s daily expenses and how much your family is likely to need every month. You must also keep inflation in mind when doing your calculation as it can impact the amount you’ll need in future.

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!
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