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Family income benefit
provides an income on death during the policy term. The benefits reduce
every year
until nothing remains.
For example, Sam's family needs £20,000 income a year for the next 15
years if he died. His sum assured on day 1 of the
policy would be £20,000 x 15 years = £300,000.
If Sam died 5
years later the policy would pay £20,000 for the remaining 10 years =
£200,000.
If Sam died 14 years later the policy
would pay £20,000 for the last year.
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This policy is ideal for those with young
families. Taken out when the children are young, it provides security in
the knowledge that
they will be provided
for should anything happen to you whilst they are growing up. Most
companies offer a cash option which means your survivors can take a cash
lump sum on death instead of the income.
Nowadays, most Companies
will pay the sum assured if, during the plan term, you are diagnosed as
suffering from a terminal illness. A Family Income Benefit Policy can
include Critical Illness cover.
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