Family income benefit, if suitable, could be a good value option for you in comparison with other types of life insurance policies.

This type of policy, similar to other types, will pay out on the death of the policy holder. Unlike Critical illness Cover where a lump sum is paid, Family Income Benefit will pay a monthly income in the form of regular monthly payments during the rest of the term of the policy.

This type of policy therefore prevents the problems caused when a large lump sum is given, which would raise the question of how it should be invested and also has the potential to be wasted in a short period of time.

This type of policy does not have a surrender value and so there will not be a payout if the policy holder survives beyond the end of the term. The policy will also simply stop if the policy holder ceases payments. The term of the policy will be determined and set at the start of the contract and would typically run until the 18th or 21st birthday of the youngest child.

There is a lot of information and it would be wise to seek financial advice when thinking of taking out this type of policy. TISCO are well placed to offer advice in these circumstances and would be happy to help, offering a free no obligation initial assessment to help you make the first steps. Please feel free to contact us at our St Albans office on 01727 734040. Alternatively fill out the contact form on the contact us page and one of our advisers will get back to you at a time to suit you.