Clubfinance

Family Income Benefit Insurance

We have a no obligation on-line quotation service for Family Income Benefit insurance:

Please select the "Family Income Benefit" option from the drop down menu for product type. Please ensure you read the Key Features and other product information and fully understand the policy you are interested in. See the application section for an outline of the process following the quote.

Remember your Client Declaration (all parties to sign), see our process for details. As with all online quotations of this type, the premiums quoted are estimates only and the actual premiums will depend on individual circumstances. If the eventual premium differs from the quotation, the policy will not commence without your agreement.

Please note that quotations are valid for only a limited period of time, generally 30 days. In addition, unless you proceed to the personal illustration stage, it will be necessary to requote. If your circumstances change between the quotation being generated and the policy going into force, the premium may be affected. This includes passing a birthday, half-birthday (6 months after your birthday), or in some cases a quarter birthday (3 or 9 months after your birthday).

What is Family Income Benefit Insurance?

Family Income Benefit typically pays a series of regular annual lump sums if you die. Family Income Benefit is a form of non-investment life insurance ('term insurance' or 'term assurance'). Life insurance offers financial protection in the event of your early death, if family or others, are dependent on your earnings. A policy usually covers just one person, but in some cases a spouse or partner can be covered under the same policy.

Term insurance

Term insurance (also known as 'Term Assurance' or 'Life Cover') gives you financial protection if you die within a specified period known as the "term". Your individual circumstances will determine the term that will match your needs, which might relate to the length of your mortgage, or the time until your children become independent for example. If you survive until the end of the term you receive no payment from the insurance company. There is no surrender value, meaning that if you stop paying the premiums the cover ceases and there is no refund of premiums paid.

Premiums may be guaranteed for the term of the policy or reviewable, meaning that the insurance company can increase them, usually following an initial period.

Why would you want Family Income Benefit insurance?

Other forms of term insurance pay a lump sum on death. If you decide that a regular income on death would be more useful than a lump sum then you might consider a Family Income Benefit insurance policy. If you die during the term of the policy a regular income is paid to your dependants for the remainder of the term. Different policies provide an income that either remains the same, or increases each year (for example based on inflation).

Assessing your demands & needs

A loss of life can result in a reduction of income for your family or other dependants which could lead to problems paying debts or meeting tax liabilities.
In the event of your death, you may want to provide for family or others dependent on your earnings.

On your death your estate might be liable to pay inheritance tax. Inheritance tax is payable if the value of your estate is above a certain limit. Life insurance can be written under trust so that on your death the sum insured does not form part of your estate and depending on the circumstances and the nature of the trust may not be liable to inheritance tax. Trusts can also avoid the need for probate so that claims may be paid more quickly.

Additional options

Most policies have additional options (these will increase the premium):

  • Waiver of premium - typically if you are unable to work due to illness or injury, the insurance company will pay your premiums to keep up the policy;

  • Critical Illness - This provides cover against specific serious illnesses. Depending on the policy, a claim for critical illness may mean that the policy will not also pay out under the life insurance element.

Application

To apply for a policy you will have to complete and sign a proposal form. This includes questions on your age, occupation and health. You must answer all questions truthfully. You must also inform the insurer of any change in your circumstances between completing the application and the policy going into force. If you do not, or if you fail to disclose all relevant information, your policy may not pay out. Once the insurance company has received this information, in some cases it may need additional information for underwriting purposes. In some cases your answers may result in you being refused cover or a change to the premium quoted. Once the policy is in force you have an ongoing duty to tell the insurance company about any changes in your circumstances.

Product providers included in the Clubfinance quote

Our on-line quotation service includes the following product providers:

  • AEGON Scottish Equitable
  • Bright Grey
  • Bupa
  • Legal & General
  • Scottish Provident

Why does Clubfinance provide such low quotes relative to even some of the 'Discount Life Insurance' companies?

First, we do not give advice or recommendations. Second, Clubfinance has a very simple policy of providing excellent value to our customers. We do this by rebating our initial commission to reduce the premium. We rebate up to 90% of initial commissions. We urge you obtain quotes from other companies, as we are confident of our low quotes.

Conclusion

It requires careful planning to choose the right life insurance policy. It is important to read the Key Features and other information relating to each policy to understand the features, benefits and limitations of each. It is also important to make sure that your cover continues to suit your changing needs and circumstances.

This is a general overview only. You must read the Key Features and other product information specific to the policy you are considering. This overview does not represent and is not intended to represent advice or recommendation. If you need advice you must contact a firm that can provide the advice you need.

Please click here for a no obligation on-line quote for Family Income Benefit Insurance

 

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