Family Income Benefit

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What does family income benefit cover?

Family income benefit is designed to provide an income for the family in the event of the insured death.

Recently insurers have extended family income benefit to include defined critical illness cover.

It is similar to decreaseing life and critical illness cover and taken for a specific term.

Should you die or suffer from a defined critical illness then you or your family will receive an income for the rest of the term.

Most families rely on at least one income, if you chose a benefit of £2000 per month the following explains how it works.

If you took a 25 year term and died or suffered from a defined critical illness five years into the term you or your family would receive a monthly benefit of £2000 per moth for 20 years.

If you were in a position to claim after 20 years then you or your beneficiaries would receive a monthly payment for the remaining 5 years.

The term is the period of time the policy is in force.

If you have any questions regarding any of the products you find information about on this site please feel free to contact You 1st Mortgages and we will do everything we can to assist you.

Below are links hopefully answering any questions you may have.

Family income benefit is designed to provide an income for the family in the event of the insured death.

Recently insurers have extended family income benefit to include defined critical illness cover.

It is similar to decreaseing life and critical illness cover and taken for a specific term.

Should you die or suffer from a defined critical illness then you or your family will receive an income for the rest of the term.

Most families rely on at least one income, if you chose a benefit of £2000 per month the following explains how it works.

If you took a 25 year term and died or suffered from a defined critical illness five years into the term you or your family would receive a monthly benefit of £2000 per moth for 20 years.

If you were in a position to claim after 20 years then you or your beneficiaries would receive a monthly payment for the remaining 5 years.

The term is the period of time the policy is in force.

This differs depending on the insurer.

Some provider definitions mean you are more likely to get a claim at an earlier stage of the critical illness, others at a later stage or on death.

Due to the differences available between insurers it is advisable to have a full and proper discussion with your financial adviser to discuss exactly what suits your circumstances.

If you have any questions regarding any of the products you find information about on this site please feel free to contact You 1st Mortgages and we will do everything we can to assist you.

Usually the insured has the interest of loved ones in mind and wants to make sure they are looked after.

It can be taken out for a term up until retirement or to when the children have left university.

With traditional life and critical illness protection a lump sum is paid.

This means the beneficiaries of the policy will have to manage that money to last, which may include having to invest the money in the stock market which has its own risks which can be seen by the drop in share prices recently due to Covid 19. This also comes with additional costs with financial advisors looking after the funds for you.

Family income benefit provides a monthly benefit, replacing the lost income which allows the beneficiaries the ability to budget.

This can be used to make mortgage payments, rent or for whatever your family need it for to maintain their standard of living.

If you have any questions regarding any of the products you find information about on this site please feel free to contact You 1st Mortgages and we will do everything we can to assist you.

Like all policies insurers use Actuaries to help assess the risk of an individual. The information regularly considered for decreasing term critical illness insurance are;

OCCUPATION – Your job is a major determining factor in the cost. Most companies divide occupations into 4 general classifications. Some occupations will be classified as uninsurable and you may not be able to get income protection.

AGE – The younger you are when you start this type of policy the lower the cost.

SMOKING STATUS – Smokers are more likely to suffer from a range of illnesses, if you Vape you will be classified as a smoker.

MEDICAL HISTORY – You will be expected to answer personal medical questions upon application, but your family medical history will also be taken into consideration.

LIFESTYLE – These are your hobbies the activities you do in your spare time. Certain activities like riding a motorcycle will increase your premium with some companies and others will not insure you at all.

If you have any questions regarding any of the products you find information about on this site please feel free to contact You 1st Mortgages and we will do everything we can to assist you.

Yes, if you put the policy in Trust then the beneficiaries receive the monthly benefit.

No, if you cancel the policy during the term, live or are not diagnosed with a defined critical illness during the term then you will not be entitled to any money back.

You will have a choice of reviewable or guarenteed premiums at the start f the policy.

If you choose guarenteed you will know exactly what the cost is for the term.

If you choose reviewable, insurers review the policy at specific intervals which may lead to an increase in premiums and become unafordable.

You can also have increaseing premiums to offset the devaluation of your benefits against inflation.

Any diagnosis that is not defined in the policy as a defined critical illness. The definitions will vary by insurer.

If you do not receive a confirmed diagnosis of a defined critical illness or die during the term you will not receive a pay-out.

Yes, due to the complex nature and the differences between insurers it would be advisable to seek professional advice.

We offer fee free protection reviews.

What protection do I have if I receive advice from You 1st Mortgages?

If you receive advice from You 1st Mortgages we and our Financial advisers subscribe to and abide by a number of laws and regulations that exist for your protection, confidentiality and security.

These include;

 

  • The Financial Conduct Authority (FCA) – We will tell you if any product or service recommended is not regulated by the FCA.
  • The Financial services Compensation Scheme – for your financial security.
  • The Data Protection Act (DPA) – to protect your confidentiality.
  • The Financial Ombudsman Service – an independent and impartial body to help resolve complaints between financial businesses and their customers.
  • Financial crime – we support the Proceeds of Crime Act and all efforts to eliminate money laundering.
  • Other interests – To avoid doubt we will tell you if any conflict of interest exists.

 

 

Family income benefit is designed to provide an income for the family in the event of the insured death.

Recently insurers have extended family income benefit to include defined critical illness cover.

It is similar to decreaseing life and critical illness cover and taken for a specific term.

Should you die or suffer from a defined critical illness then you or your family will receive an income for the rest of the term.

Most families rely on at least one income, if you chose a benefit of £2000 per month the following explains how it works.

If you took a 25 year term and died or suffered from a defined critical illness five years into the term you or your family would receive a monthly benefit of £2000 per moth for 20 years.

If you were in a position to claim after 20 years then you or your beneficiaries would receive a monthly payment for the remaining 5 years.

The term is the period of time the policy is in force.

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