Personal protection insurance
Family Income Benefit
family protection
Bright Life Protection : Family Income Benefit
support your loved ones with regular financial assistance
Family Income Benefit is a type of life insurance designed to provide your family with a regular, tax-free monthly income if you pass away during the policy term. Unlike traditional life insurance, which pays a lump sum, Family Income Benefit ensures that your loved ones receive steady financial support for the remaining duration of the policy, helping them manage day-to-day expenses with ease.
What is Family Income Benefit?
Family Income Benefit works like a salary replacement. If you die or are diagnosed with a terminal illness during the policy term, your family will receive regular payments until the policy ends. This benefit is especially useful for covering ongoing expenses such as rent, mortgage payments, childcare, and household bills.
Why Choose
Family Income Benefit?
Consider these four important reasons to choose Family Income Benefit by Bright Life…
Flexibility
Options include level or increasing cover, allowing the benefit amount to remain fixed or rise with inflation.
Affordable
Family Income Benefit is often more cost-effective than other life insurance options that pay out a lump sum.
Regular payments
Ensures your family receives a predictable monthly income to cover everyday living costs.
Tailored to Your Needs
You can choose the length of the cover (e.g., until your children reach a certain age or your mortgage is paid off).
How Does Family Income Benefit Work?
With Family Income Benefit, you select the length of the policy term and the monthly benefit amount. If you pass away during this term, your beneficiaries will receive monthly payments for the remainder of the policy. For example, if you have a 25-year policy and pass away after 10 years, your family would receive payments for the remaining 15 years.
Who is Family Income Benefit For?
This type of cover is ideal for individuals with young families who rely on their income to cover household expenses. It’s also a smart choice for those who want an affordable way to ensure their loved ones are financially supported over the long term, rather than receiving a one-time payout.
Frequently Asked Questions
Family Income Benefit is a type of life insurance that pays a monthly income to your beneficiaries if you die during the policy term. Unlike a lump sum payout, this income is provided regularly, helping your family cover ongoing expenses.
You can choose the policy term, typically aligning it with key financial milestones like paying off your mortgage or until your children are financially independent. The benefit payments will continue until the end of the policy term if a claim is made during this period.
The cost depends on factors such as your age, health, lifestyle, and the length of the policy term. Family Income Benefit is often more affordable than traditional life insurance because it spreads the payments over time instead of paying out a lump sum.
Traditional life insurance pays out a lump sum to your beneficiaries if you pass away, whereas Family Income Benefit provides a monthly income over the remaining policy term. This makes it a good option for covering everyday expenses rather than large one-time costs.
Can I combine Family Income Benefit with other types of cover?
In the UK, Family Income Benefit payments are typically tax-free for beneficiaries. However, if the payments form part of your estate, they may be subject to inheritance tax unless the policy is placed in trust.
Yes, but it may affect your premiums or the level of cover available. Some insurers may offer coverage but with exclusions, while others may charge higher premiums based on the risk of your condition.
Many Family Income Benefit policies, including those offered by Bright Life Protection, will pay out early if you’re diagnosed with a terminal illness and expected to pass away within 12 months.