Many people like the immediate reassurance of leaving their family a lump-sum payment once they are gone. But for others, the idea of providing a regular income is more appealing.
Instead of an instant windfall, a life insurance policy with a family income benefit means your family will receive fixed, tax-free payments should you die during the policy term. These are usually paid monthly or annually depending on the policy’s details.
For example, if you took out a 30-year policy and died five years into it, your family would receive payments for the next 25 years. Ongoing support can be especially beneficial for those who don’t want the added responsibility of managing a large lump sum straight after losing a loved one.
As with all insurance policies, conditions and exclusions will apply.