Thinking about how our loved ones are taken care of should anything happen to us is understandably a topic many people avoid. It’s the kind of thing that we hope won’t happen any time soon but that doesn’t mean that it’s not important. Knowing that your family members will be able to cope financially if you pass away can provide great peace of mind even if you’re young and healthy at the moment.
Of course, the usual way to prepare for this kind of thing is to take out a life insurance plan. However, the problem with common plans is that they pay out in one lump sum. Although your loved ones will receive the payment, it can be overwhelming for people to have to deal with a large amount of money while going through the grieving process.
The good news is that there is another option to consider in the form of Family Income Benefit.
What is Family Income Benefit?
Family Income Benefit is a form of life insurance. However, unlike a regular policy, Family Income Benefit provides your loved ones with a regular monthly or annual payment to help with living costs.
It’s easy to set up and you can find all the expert advice you need from LifeSearch.
What are the pros of Family Income Benefit?
There are several reasons to consider taking out a Family Income Benefit policy:
- Family Income Benefit helps to cover living costs for your family with a regular monthly or annual payment. This means that they wouldn’t have to worry about the financial aspect of missing income if you were to pass away.
- The fact that the money is paid out in manageable chunks means less stress over complicated lump sums that can be easily mismanaged and overwhelming during the grieving process.
- The monthly income will continue to be paid to your family for the length of your policy. For example, you could set it up to pay out until your children complete their education and become self-sufficient.
- Lump sums often come with complications such as fees and taxes that leave your family with less money to pay for mortgages or rent, bills, food, and school fees. Family Income Benefit is tax free over the period you choose so you’ll be sure that your family are getting what they need.
- You’ll be protected against death but also serious illness, so your family won’t have to struggle financially if you become too ill to work.
- Family Income Benefit can often be taken out alongside another lump sum life insurance policy that’s designed to pay off your mortgage.
Ultimately, Family Income Benefit has so many pros going for it that it’s a no brainer. Making sure your family is taken care of in the best and least overwhelming way possible is, of course, a priority. As such, it’s worth getting in touch with the experts over at LifeSearch who will be able to explain anything you’re unsure of and help you to make the right choice for you and your family.