Family Income Benefit or Term Insurance ?

By: Jason Haines

On the market today there are lots of different types of life insurance that will provide much needed money to the family of the insured on the event of their death. Often this money is used to pay off a mortgage, but it can also be used to help with the day to day expenses of family life. One of the life insurance products that is very popular is family income benefit.

Family income benefit works by paying out a lump sum to the family of the deceased each month until the end of the policy term. This lump sum is dependant on the amount of the monthly premiums that the insured has paid and the term is fixed at the start of the policy.

Pros and cons of family income benefit
Pros
A lump sum is paid out each month to the family of the deceased, this can be a much needed help as the insureds income is not coming into the home anymore and this can be used for mortgage repayments or any other expenses.
Con
The lump sum that is payable each month will only continue until the end of the policy term, this means that if the insured dies 6 months before the end of the term their family will only receive 6 payments. This can be much less than the insured has paid into their policy and will not provide a long term financial solution.

If you would like to find out more about family income benefit why not visit one of many online life insurance information sites to read up more on the topic. If you would rather be able to speak to a trained advisor about family income benefit simply contact an independent financial advisor and have all your questions answered with no obligation.

Family income Benefit Quote
When you have a mortgage you should have your mortgage protected. After all your mortgage pays for your home and without it you could find yourself being evicted as your lender will repossess your house. Many people take out a life insurance policy in order to provide cover for their mortgage should something happen to them. One form of cover that is very popular is family income benefit.

Family income benefit is a plan that will pay out a fixed lump sum each month to the family of the insured should they during the term of the policy. However it should be mentioned that the lump sum payment will only continue until the end of the policy, and should the insured die just before then end of the policy their family may only receive a few months worth of payments. This lump sum can vary in amount and is dependant on how much money the insured pays each month for their premiums. If you are interested in taking out this cover you should get a family income benefit quote.

How do I get a family income benefit quote?
If you are thinking of taking out family income benefit you need to know the best way to get a quote for the cover. One way is to contact insurers separately and discuss your needs in order to get a family income benefit quote, however this is time consuming and often quite frustrating as each insurer will try to get your custom.

Instead you could opt to find out more at an online life insurance broker, or for a hassle free family income benefit quote contact an independent financial advisor.

Article Source: http://yourfinance.co.za

About The Author
For more information on Term life illness visit Go Direct for definitions of term life cover, Or perhaps you would rather speak to someone about term life cover, if this is the case contact Go Direct who have a trained advisors to hep you with impartial family income benefit advice.