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.
21 May 2007 14:43:54
The China Insurance Regulatory Commission has approved a capital increase for CITIC-Prudential Life Insurance Co.
A joint venture between UK life insurance company Prudential PLC and the China International Trust and Investment Corporation (CITIC), the deal cements Prudential's status as the only European life insurance firm with a foothold in the Chinese life insurance market.
The regulatory commission confirmed that, following the announcement of the £96 million capital increase, the 50-50 split for the venture would remain.
The arrangement, the first ever Sino-British life insurance venture, has seen great success, with its first branch opening in Guangzhou in October 2000, while subsequent branches opened in Beijing, Suzhou and Shanghai.
With 18 branches, it is now the second biggest life insurance operation in China, with £109 million profits in 2006, a 52 per cent increase on the 2005 figures.
Speaking to the China Daily newspaper, chief executive Xie Guanxing recently confirmed the most important aspects of life insurance: "It is love and responsibilities.
"Despite the different types of policies, insurance's prime function is protection rather than investment."
09 January 2008 16:24:34
A larger number of people in the UK should invest in life insurance because it provides a "basic form of protection" for families.
That is the conclusion of major provider Friends Provident after research revealed that more than half of Britons do not have life cover.
Friends Provident's poll indicated that over 27 per cent of individuals asked would choose to buy life insurance if they had £5 a month dedicated to a premium, while six per cent admitted they would swap their mobile phone for a free policy.
Of the 46 per cent of people who said they had life insurance, nearly seven in ten claimed they seek professional advice when considering cover.
Mark Jones, protection products and actuarial manager at Friends Provident, confirmed that life insurance is a basic way of providing for loved ones at a difficult time.
"Understandably, none of us really want to think about our own mortality, but we do owe it our families to ensure that we have made provision - be it to pay off the mortgage or provide a lump cash sum," he remarked.
According to a recent study by Aegon, British people are now living longer, with 9,000 people aged 100 years or older living in the UK in 2006.
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
06 June 2007 16:58:43
Norwich Union, one of the biggest providers of life insurance in the UK, has launched a new print and broadcast advertising campaign.
The adverts are aimed at policyholders considering equity release as they near retirement age.
Elizabeth Boardall, head of marketing at Norwich Union post-retirement products hope the 'Making it easier' campaign would help customers gain a better understanding of their financial options in retirement.
"We are delighted to have launched this fantastic campaign and are confident it will encourage potential customers to consider equity release as an additional source of income in retirement."
Ms Boardall continued: "While equity release may not be right for everyone, the campaign will encourage potential customers to seek the advice of their financial adviser, in addition to speaking to Norwich Union."
The life insurance provider has recently been involved in extensive discussions regarding the most suitable reattribution method for £4 billion worth of unclaimed inherited estate funds.
