What is the difference between a standard life insurance policy and Family Income Benefit?

Bequeathing a lump sum onto your family with standard life insurance will provide them with the money that they need, but it may be difficult to manage such a large amount of money given to them all at once.

Alternatively, Family Income Benefit will provide your loved ones the money in a way that they are already used to receiving it – as an income. The loss of a loved one is already a huge change to your family’s lives, so keeping a structure with money means that your family won’t need to concern themselves with money management as well as mourning their loss.

Who is/isn’t suitable for Family Income Benefit?

Family Income Benefit is usually taken out by parents with young children, to support their partner with household bills, childcare, and other daily costs, in the event of their death.

Family Income Benefit is not suitable for those wanting to pay off their mortgage with their life insurance. Whilst Family Income Benefit can pay off monthly repayments, it will not pay off the full sum upon death. Those hoping to do this should seek standard life insurance.

Is Family Income Benefit costly?

No, in fact, Family Income Benefit is known as one of the most budget-friendly types of life cover!

This is because the insurance provider typically won’t need to pay off a large sum, and if they do, it’s not paid in one go.

However, it’s important to note that the cost of the insurance will depend on various factors such as your health, age, habits, etc.

Can I get a joint Family Income Benefit policy?

Yes, but this does mean there will only be one set of income payments. So, the policy will still end, even if just one of you passed away.

Whilst it is more expensive to take out individual policies, it will ensure that 2 incomes are paid in the event of both parents passing away. However, we always suggest speaking to a professional before making any final decisions.

Can I write Family Income Benefit in trust?

Yes! All life insurance policies can be written in trust.

Writing your policy in trust means that your policy is separated from your estate, which should mean that your family gets the money faster, as the policy does not need to go through the probate process.

I have more questions regarding Family Income Benefit

If you have any more questions regarding Family Income Benefit, just give us a call on 0117 251 0083, or email us at enquiries@integraf.co.uk

Otherwise, if we answered all your questions, why not follow our social media accounts, @integrafltd, to keep updated on when we post more informative blogs?

We hope to see/hear from you soon!

PLEASE NOTE: IF THE POLICY HAS NO INVESTMENT ELEMENT THEN IT WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.