What is Family Income insurance and what are the benefits?

Family Income Insurance is designed to provide a monthly income to a family after the death of its principle provider or their partner. The payments will continue at the cover level specified in the policy until the end of the policy's term. These payments can either be index linked to rise in line with inflation or to continue at a flat rate.

Policies can be single or joint policies; in the case of joint policies the policy will begin paying out at the death of either policyholder, upon death of both policyholders the policy will still only payout once.

This type of benefit is used to provide a monthly income to replace lost income, upon death of one of the principle providers in the family. It is often taken up to retirement age upon which the policyholder would no longer have a monthly income. Please note that an income is only paid to the dependents up to the expiry date of the policy. At the end of the policies term all payments would stop.

Family income benefit insurance does not involve any investment and at no stage has a surrender value to the policy. Family Income Insurance can also be combined with other life insurance products, most commonly Critical Illness Insurance.