Family Income Benefit
Securing Your Family’s Future: Family Income Benefit for Contractors
As the primary earner in your household, the loss of your income can significantly impact your family’s ability to maintain their lifestyle. From mortgage or rental payments to school fees and loans, the sudden financial strain after the passing of a loved one adds to an already difficult time.
What is Family Income Benefit (FIB)?
Family Income Benefit, or FIB, offers an excellent solution to safeguard your family’s future by providing a monthly cash sum to support them financially.
Let’s delve deeper into family income benefits and explore how this cost-effective life insurance plan can help you protect your family for the months and years ahead.
How Does Family Income Benefit Work?
Family Income Benefit is a type of life insurance policy that pays out a regular monthly benefit if the policyholder passes away. You have the flexibility to determine the desired monthly payout and the length of time you want the benefit to be paid.
For example:
Let’s say John takes out a family income benefit policy of £1,000 per month over 25 years. If John were to pass away after five years, the policy would provide a monthly payout of £1,000 for the remaining 20 years.
If, on the other hand, John were to pass away after 20 years, the policy would pay out £1,000 per month for the remaining five years.
The total payout decreases over time as the policy runs without any claims. This feature makes family income benefits more affordable every month compared to a level term plan.
Does the Cost Change with Age?
The most common type of monthly premiums for contractor family income benefit is guaranteed premiums, which remain fixed throughout the entire policy duration. As the total coverage amount gradually decreases over time, the price starts and remains significantly lower than that of a level-term plan.
Alternatively, you may choose to increase the coverage amount in line with the Retail Price Index (RPI) or a fixed percentage. This adjustment will lead to higher monthly premiums, but it safeguards against inflation and the potential devaluation of the payout.
How Long Should the Cover Last?
The duration of coverage for your contractor’s family income benefit depends on your individual circumstances and budget. You may opt for coverage aligned with specific commitments, such as school fees, which would entail a shorter duration until your children complete their education.
On the other hand, if you are the primary breadwinner, extending the coverage may be more prudent until retirement age. This ensures that your family can continue to manage their financial obligations and replace your income in the event of your passing.
For more information on family income benefits or to receive a personalized quotation based on your specific circumstances, please contact a member of our team today. We are here to assist you.
Why Choose Family Income Benefit?
Family Income Benefit offers several advantages:
- Financial Security: It provides your family with a consistent monthly income, helping them meet their financial needs and maintain their quality of life even in your absence.
- Customizable: You can tailor the benefit amount and duration to match your family’s specific requirements, ensuring they have the necessary support.
- Cost-Effective: Family Income Benefit is often more affordable than other life insurance options, making it accessible to a wider range of individuals.
- Inflation Protection: You can index the benefit to inflation, ensuring its real value remains consistent over time.
Consult with Our Team
If you are considering Family Income Benefit to protect your family’s financial future, we encourage you to contact our experienced team. We can provide you with personalized guidance, answer your questions, and assist you in selecting the right policy to meet your needs.
Don’t leave your family’s financial security to chance. Contact us today to start securing your family’s future with Family Income Benefit.
