How Family Income Benefit Works

Family Income Benefit: This is a type of Insurance that provides a monthly income in the event of death. The benefit of a monthly plan is a monthly amount paid out which can be used towards bills such as mortgage payments or rent, food, electricity, gas and other amenities and expenses so your family can maintain their standard of living and not feel any financial strains. Family Income benefit can help to ensure that your family will not have the additional stress of having to pay their bills after losing the primary earner. This policy is ideal for families with young children as it safeguards their standard of living. The main difference between a Family Income Benefit plan and a term insurance policy which pays a lump sum is the income benefit will pay out what is left of the policy for example if the policy in place is to pay out a monthly amount of £2000 per month over 20 years and death occurs after year 5 then the benefit will pay the monthly income for the 15years remaining on the policy. A term insurance policy pays out a lump sum whenever death occurs within the term. For this reason the Family income benefit is usually a cheaper policy. 

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Before taking out a Family Income protection plan, it is important to work out how much your dependants will need to cover bills on a monthly basis now and in the future and how long you will want the policy in place for. This is usually until your children are no longer financially dependant on you. 

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Are you ready to discuss your plans?

It is important to review your existing plans annually to ensure you have the right level of cover in place. Book an appointment with us to review your policies or for us to provide you with advice on what policies you may need. Alternatively, please contact us on 0800 0495949 to arrange a mutually convenient time for a telephone discussion or Email us at info@pearlroseinsure.co.uk. There is no cost or obligation. We will have a chat about what you have or need and how you can save money on your insurance. 

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