The ins and outs of Family Income Benefit Insurance
Family income benefit insurance or family income benefit cover compensates for the loss of income if the family income benefit insurance policyholder passes away or expires.
The income is received by the beneficiaries for the left over tenure of the policy and the monetary benefit is not typically offered as a one-time amount. The premium can be paid as a monthly or yearly amount through a direct debit arrangement.
What are the salient features of Family Income Benefit Cover?
These policies have some differences with the conventional life insurance policies. They are also quite affordable in comparison to life policies.
This insurance policy comes with a range of benefits and some of the salient advantages offered by this cover are as follows:
- This policy offers tax-free earnings from the date on which the policyholder died till the conclusion of the term.
- This policy has a fixed term.
- There is no survival benefit.
- You can choose to make a claim to convert the regular earnings to a one-time amount.
- The amount of premium stays the same for the whole term of the policy.
- You don’t get any surrender value for giving up the policy.
- The policy has been planned for a fixed number of years.
- You can choose from single life cover and joint life cover. Single life cover is for covering only one person and joint life cover is ideal for two persons. Either individual covered under this can make a claim, however the sum assured will only be given on one occasion.
- A critical illness cover can be included in the policy. It is not mandatory that the policyholder has to pass away for making a claim.
- The amount of premium depends on factors such as your health situation, age, gender, policy length and amount of cover.
What are the benefits offered by Family Income Benefit Insurance?
Buying this policy will benefit you in the following ways:
- The benefit is offered when the policyholder expires (or if a particular life-threatening disease is diagnosed provided that choice is excluded) for the residual period of the policy.
- Affordable coverage which offers tax-exempt income, especially effective for new households who have a goal of safeguarding themselves from the loss of income as a result of death or critical illness.
- You can choose from short or long-term plans.
- The surviving better half/partner gets precious earnings which they can use to raise their kids, make them economically independent and so on.
- People can apply for it either singly or jointly.
- Beneficiaries get various types of support during a claim, for example counseling, physiotherapy and transport expenses.
Are there any limitations of this policy?
Similar to any other insurance policy, family income benefit insurance policies feature the following drawbacks or downsides:
- There is no ongoing eligibility of being insurable. It might happen that you become sick near the close of the term and as a result of this, you are deemed ineligible for getting additional coverage.
- The policy is not flexible in nature. You might have a desire to stretch the cover. However, it will not be allowed.
- The sum assured is determined from an earlier period and inflation is not taken into consideration.
- There is no investment component in this policy.
How to get a good Family Income Benefit Quote?
You just need to furnish some basic details such as the period of cover, amount of monthly cover you need, your age, name and other information to get an instant, free and no-obligation quote, similar if you get a title loan without job.
Remember, finding the best insurance cover needs a lot of comparison and market survey, just like if you want no inspection title loans. Contact Full Finance today.