Family Income Benefit insurance is one of the best ways to provide financial aid to your family in your absence. Now, your death might be the last thing on your mind at present but you won’t really want your family to be left in a lurch in your absence. You should take all due measures in order to secure a safe financial future for your family. As already mentioned, the family income benefit policy can be considered to be a worthy investment in this regard. As we progress through this post, we’ll come to know more about its particular benefits, but at first let’s go through its general features.

Features

The policy pays the benefits as tax-free monthly or annual earnings instead of a huge sum of money to the family of the insured after his death.

The cover only pays out the benefits if the policyholder dies within the tenure of the policy.

A critical illness cover can be added if the insured is diagnosed with a serious disease. In that case, the family will receive payments when the insured is undergoing treatment and even after he dies.

It can be applied for both singly and jointly by applicants.

In case of divorce settlements, if you are the one who is sponsoring the regular monthly payments for your child or children, then the policy will continue to protect him/them after your death.

Benefits

One of the major advantages of the policy is the absence of a lump sum. A young family finds it difficult to control their expenses in times of mourning. It becomes difficult for them to stick to a proper budget owing to their general inexperience. If they are handed over with a lump sum during these times, they are most likely to overspend, only to find themselves out of cash after a few years or so. However, there will be no scope of any such excess spending if they are handed over with a smaller amount of money every month. In other words, it’s easier to stick to a budget with a limited amount of money in hand.

Please make sure that you are considering a few factors before taking the cover. Your present volume of debts, the present lifestyle of your family and the age of your children are just some of the factors that you should consider. If you have more than one child, it is important to ensure that when you are securing family income benefit insurance, you are considering the age of both your children.

Author Bio: Sam Payn is an experienced web content writer with expertise in financial writing. At present he is writing about loans and insurance.