Family Income Benefit
At SMH Financial Services, we understand the importance of protecting your family’s financial security in the event of your untimely death. That’s why we offer advice on a range of solutions designed to provide a regular income stream if you are no longer able to provide for your family.
What are Family Income Benefits?
Family income benefit is a type of term life insurance for parents and families, designed to give regular monthly payments to your family if you die or become terminally ill. The policy will pay out a regular, tax-free income up until a specified date to replace your lost income. For example, if you took out a 20-year policy and died after five years, your provider would pay an income for the remaining 15 years. If, on the other hand, you died after 18 years, the pay-outs would only last for two years.
You get to decide how much of your income you’d like to be covered, but the larger the monthly payout, the higher your premiums.
Who is family life insurance suitable for?
There are several advantages to getting a simple, regular income over a lump sum:
- To make a lump sum last, it may need to be invested in the stock market
- You may need the money sooner to deal with new, additional costs such as childcare
- A regular sum can make it easier to handle budgets and bills at a difficult time
- You can set the income to last until you expect the children to be financially independent.
If you would like to arrange an initial meeting with one of our financial advisers, please contact the SMH Financial Services team on info@smh.group or 0114 266 4432.
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.