Ensure your family receive
regular payments if you’re diagnosed
with a terminal illness or pass away

The key features of a family income benefit insurance policy are:

• The policy is usually active for a fixed period before it ends. It only pays out if you pass away or are diagnosed with a terminal illness within the fixed period, provided you have kept up with the insurance premiums.

• Any pay-out will be tax-free and paid through monthly instalments to assigned beneficiaries within the family. The amount paid out will be determined by the policy taken out. However, it may be possible to move to a lump sum payout if desired. 
• The main purpose of a family income benefit is to help family members maintain finical security should you pass away, especially if the family rely on your income to pay a mortgage and monthly bills.

To claim on the policy, your beneficiaries would need to notify the policy provider and supply them with a copy of the death certificate or other suitable proof. This is why it’s advisable to let at least one beneficiary know that you’ve taken out the policy.

If you’re claiming due to a terminal illness, the policy provider will require evidence of the diagnosis, which can be accessed from your doctor or hospital.

The advantage of using a family income benefit is that the policy will be in effect during the period when your family has the most significant financial obligations, such as during a mortgage repayment term.

The drawback is that this is a term policy and it may come to an end without ever paying out. Although if this occurs, it means you won’t have passed away and won’t have been diagnosed with a terminal illness during the term.

There are some important considerations when taking out and holding a family income benefit policy, such as:

• The length of time you want the policy to last, which could coincide with significant financial obligations like the mortgage on your family home. 
• The pay-out amount should the policy be triggered, which should cover the expenses you expect your family to keep paying.
• Reviewing the policy over its term to include key updates, such as having children or moving to a new property with a new mortgage.

Using a financial adviser to help you find the right family income benefit policy isn’t just about convenience and efficiency. An adviser could help you locate a better deal, and they could ensure you don’t make a crucial mistake.

Financial advisers work to find the most suitable and advantageous family income benefit policy based on personal circumstances and needs, such as those listed above

Achieve your peace of mind by speaking to a financial adviser about a family income benefit now. The Taylor James team are experienced and ready to find your most suitable policy options.