Family Income Benefit
How will your loved ones manage if the Worse Was to Happen to you?
Family Income Benefit is a type of life insurance that ensures your family is financially secure in the event of your death. This policy is designed to pay out a regular income to your beneficiaries instead of a lump sum payment.
The income provided is tax-free and is paid out for the remaining term of the policy. For instance, if the policy term is 20 years, and the policyholder dies after five years, the beneficiaries will receive the annual income for the remaining 15 years of the policy.
It is worth noting that the payments from this policy are not subject to income tax, which means that the full amount of the income is payable to the beneficiaries.
However, the policy payout may affect some state benefits. Therefore, it is important to seek advice on the potential impact of the policy on state benefits before taking out the policy.
It is important to remember that the Family Income Benefit policy has no cash value at any point, and the policy will terminate at the end of the term.
If the policyholder fails to maintain the premium payments, the cover will lapse, and the beneficiaries will not receive any payout in the event of the policyholder’s death.
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Family Income Benefit is a simple yet powerful way to protect your loved ones by providing a regular income if the unexpected happens. Whether it’s covering household expenses, childcare, or education costs, this policy ensures your family’s financial stability during difficult times.
Secure their future today—contact us to explore how Family Income Benefit can bring peace of mind to your planning.
