Answered by Andrew Jenkinson
Family Income Benefit vs. Life Insurance
Family Income Benefit is unfortunately relatively unheard of as an insurance product although it is fantastic for families with young children who want to protect their standard of living until they reach adulthood.
It is effectively a life insurance policy which pays out an annual income rather than a lump sum, the policy term tends to align with when you believe your children will be self-sufficient. Should the worst happen to you an annual payment would then be made to your dependents to ensure they can maintain their standard of living.
More cost effective than term insurance
Family Income Benefit tends to be more cost effective than your typical term life insurance policy as the insurer is paying an annual income upon a claim rather than one big lump sum. The annual income makes the ongoing payments manageable and ensures you do not have to worry about investing a lump sum or overspending and not budgeting correctly for your expenditure in the future.
Drewberry can help
If you would like to discuss this further or have any other questions don’t hesitate to contact us on 01273 646 484 or pop us an email email@example.com. Not only are we completely independent and have access to the whole of market but our service is fee free.
Frequently Asked Life Insurance Questions
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