Most people consider life insurance seriously when they buy a home. When buying a home and taking out a mortgage, it is prudent idea to make sure the mortgage is paid off should the worst happen. Usually this is achieved through either a level term or decreasing term life insurance policy.
However even if the mortgage debt is cleared, looking after your children, spouse and other expenses still needs to be achieved. (Think Council Tax, utility bills, groceries, holidays, schools etc…) A cost effective and simple solution for this is Family Income Benefit.
Unlike traditional lump sum life cover, Family Income Benefit can be received as either an annual or monthly benefit. Since the liability to the insurer is spread over time, the premiums are significantly cheaper compared to standard life cover. The income pay-out is also more suited to the ongoing financial commitments. The amount of income can be tailored to your individual needs, and protected against inflation over time.
This tends to be very popular with families in particular – a way of creating high sum assured with a low premium.