Family income benefit is a type of life insurance known as term insurance, which lasts for a set time known as the term. A family income benefit policy will pay out a monthly tax-free income if you die during the term, until the policy ends.
Most families rely on at least one regular monthly salary to cover their household spending. How would your household cope financially if you lost a source of income?
Household bills and other financial commitments still need to be met and a loss of income could mean financial hardship – this is where family income benefit life insurance can help in terms of providing financial support.
The monthly pay-out from a family income benefit policy is paid from when you die until the end of the term. Once the term ends, cover and any payments stop. So, if you take out a 20-year policy and die five years later, your family will receive a regular monthly income for the remaining 15 years.