Most people think there is only one product for everything and do not take the time out to do some research. Most people opt for the standard Life Cover. Of course there is nothing wrong with having Life Cover, in fact this is welcomed but did you know instead of receiving a one off lump sum, you can receive monthly payments……….. Let me explain
- A Family income benefit policy is very similar to the standard Life Cover in the fact that the premiums on these policies are either guaranteed, meaning they'll stay fixed for the length of the policy, or reviewable, which means they will be reviewed.
- Following on death, the insurer will pay the family an income, either monthly or yearly depending on the specifics of the policy, for the remainder of the policy term.
- For example, if you take out a 30-year policy and then die five years into it, your family would receive payments for the next 25 years. But if you die 28 years into the term, the payments would be limited to the last two years of the policy.
- Because of the very different ways these two life policies pay out, family income benefit can often work out cheaper.
