Home / - Family Income Benefit Life Insurance
Family Income Benefit Life Insurance is a Term Life Insurance product that, as the name suggests, is designed to provide an income to dependants in the event of a claim, rather than a cash lump sum.
The sum payable is specified as an annual income to the dependants.
In the event of a death the life insurance is then payable from the date of claim to the end of the policy term.
Payments can be monthly, quarterly or annually. Income payments are, in fact, simply instalments of a lump sum (sum assured) and as such are not liable to income tax. Many companies will allow the income to be exchanged for a cash lump sum at claim if required.
It is possible to arrange the policy on an indexed basis to ensure the buying power of the amount payable is maintained over time. The indexes used are the Retail Price Index, Average Earnings Index or a simple fixed annual increase stated by the insurer at outset.
The graph below shows a £6,000 Index Linked Family Income Benefit Life Insurance, set over a term of 25 years.
Each year the customer does not make a claim the life insurance cover rises and if there is a claim the policy pays out the sum covered at that time which them increases year by year until the end of the plan.
Our advice wizard uses this type of plan to tailor make a protection policy that matches as accurately as possible the needs of dependant relatives. For example a father has a 3 year old child that he is responsible for financially. If the father dies the child needs an income from a life insurance plan that will maintain them until they become independent. The Family Income Benefit Life Insurance provides just this type of insurance and the Direct Life Advice Wizard will calculate recommended amounts of cover for consideration.
27 November 2007 16:25:16
AXA may follow in Legal and General's footsteps and eliminate the ongoing duty of disclosure from its protection products, it has been claimed.
According to IFAonline.co.uk, the insurance provider would aim to make applications easier to complete by removing the requirement.
"We have not decided whether we definitely will be scrapping the ongoing duty of disclosure but it is something we are exploring," Graham Harvey, AXA's protection managing director, told the website.
"There is a drive across the industry to make things simpler and this is part of that; it is a possibility for us."
Since the beginning of last month, individuals seeking life cover, critical illness cover or income protection from Legal and General have not had to inform the firm of any change to their health or circumstances before a policy starts.
In abolishing the rule, the insurer sought to ensure that its existing and future customers do not need to worry that a future claim may be turned down because they failed to meet the policy requirement.
AXA also recently removed the need for automatic general practitioner report (GPR) limits as a response to feedback from financial advisers regarding the lengthy delays caused by obtaining them.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
20 November 2007 10:10:37
Life insurance is just as important for housewives as it is for men, it has been claimed.
According to the Economic Times, nearly three out of every five married women are full-time mothers and homemakers, but because they are in the house it is often assumed they are not open to risk.
However, financial specialists have emphasised that insurance cover for a housewife can be valued by adding together the costs that would come about as a result of her absence.
"Life insurance is all about replacement of financial loss on the death or disability of an individual, so that the life can go on as earlier in financial terms," Debashis Sarkar, director of marketing at Max New York Life Insurance, told the newspaper.
"Housewives may not be working but they do take up multiple responsibilities that can be translated into financial value," she added.
Housewives are advised to look into policies with cash value and not pure risk cover policies, while they might also look for additional riders such as women-specific critical illness where conditions such as breast cancer, cervical cancer and ovarian cancer will be covered.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
29 October 2007 14:00:55
Smokers are already at a disadvantage when it comes to getting life insurance, income protection and critical illness cover, but new research looks set to add to their woes.
According to a study published in the American Journal of Medicine, the risk of developing psoriasis is increased by the habit.
Heavy smokers are most likely to pick up the irritating skin condition, while the risk only slowly decreases after an individual quits.
Canadian and US researchers studied data from an ongoing study of 116,608 female registered nurses aged between 25 and 42.
During the study, which started in 1989, the researchers noted 887 incidents of psoriasis, with women smokers 78 per cent more likely to develop the skin condition than those who had never smoked.
"These findings, along with well-established hazardous health effects of smoking, provide clear incentives for smoking cessation in those at risk for and suffering from psoriasis," commented scientist Dr Hyon Choi.
"Beyond the potential effect on psoriasis, smoking cessation would lead to a better overall clinical outcome in psoriasis patients, who often suffer co-morbidities related to smoking," the doctor added.
A recently-launched insurance product from Prudential rewards customers for healthy behaviour, including quitting smoking.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online
