Similar to life insurance, family income cover is paid out to your loved ones in the event of your passing. Where life insurance is paid as a single lump sum, however, family income cover is paid out on a monthly basis. They are tax-free payments and continue being paid for the term of the policy. These payments are designed to cover day-to-day expenses as opposed to larger debts like a mortgage.
As the monthly payment mimics the income that has been lost following your passing. Payments continue for the duration of the policy. This does mean that if a claim is made towards the end of the policy duration, fewer monthly payments will be made. Family income cover premiums will depend on the monthly payments you require if a claim is made.
Benefits of family income cover
Day-to-day expenses covered
Family income cover, as a monthly pay-out, can cover day-to-day expenses such as food shopping, childcare and clothing costs. This can be particularly useful if you have dependents.
Lessened financial burden
If your income is depended on by your family, pay-outs from family income cover can lessen the financial burden on your grieving loved ones.
Typically lower monthly premiums
Due to the fact that pay-outs are only made until the end of the policy duration, there is a lower risk to insurers. This can result in lower monthly premiums for many, compared to other protection products.
Why you should opt for family income cover
Family income cover can provide financial peace of mind for your loved ones if you pass away. This can be particularly important if you have dependents or if your income is the primary income for the household. As monthly pay-outs are made for the rest of the policy’s duration and are tax-free, they can be used to cover day-to-day expenses.
How Bell Mortgage Solutions can help
The Bell Mortgage Solutions team can help you assess the cover level you require. We’ll discuss with you your household income versus outgoings, to determine the value of monthly payments your family will need if a claim is required. This information, along with your age and medical history will be used to determine your policy’s monthly premiums.
Contact us to speak to a member of our team, and to arrange an appointment to discuss your protection product needs.
Read the answers to our frequently asked questions about family income cover, here.
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