Life Insurance is a simple, inexpensive means by which you can plan for the future, giving you peace of mind, that your family will be financially secure, in the event of a major illness or death; which means...your family will not be forced to change their lifestyle, and your children's future will be provided for.

We advise clients where appropriate; to have their life insurance policies issued under Trust (a free of charge service) which means that the policy falls outside their estate and is therefore, free from inheritance tax & probate costs.

Family Income Benefit
The cost of bringing up a child from birth to the age of 21 is estimated at £659* per month, equivalent
to £166,000 (this is a considerable amount of money!)

How would you provide for you family should you unexpectedly suffer a loss of income through critical illness or death?

Family income benefit is a form of life insurance cover that can be set up to provide your family with a monthly income if you should die or be diagnosed as having a critical illness, depending on which happens first. The income received under the plan would be tax free and can be used to meet the monthly outing of the family. In this way it can take away the strain of investing a lump sum provided by traditional life insurance cover.

Family income benefit with life insurance and/or critical illness cover can be cheaper than taking out level term insurance cover and may be suitable if you want to provide an income for a young family until they become independent.

Level Term Insurance

• Provides a fixed level of cover over the term of the policy
• Terminal Illness cover is included at no extra cost
• Monthly premiums are guaranteed to remain the same
• throughout the term of the policy

Mortgage Decreasing Term Insurance

• Provides a decreasing level of cover, in line with your mortgage repayment term
• Terminal Illness cover is included at no extra cost
• Monthly premiums are guaranteed to remain the same throughout the term of the policy

Critical Illness cover

• Provides financial protection should you be diagnosed with a life changing critical illness
• Cover can be Stand Alone, or combined with Level or Decreasing Term Assurance
• Monthly premiums are reviewed every 5 years, or can be guaranteed to remain the same, throughout the term of the policy

Mortgage Payment Protection Insurance (MPPI)

• In the event of a redundancy, serious illness or accident which prevents you from working, MPPI will enable you to meet your financial commitments
• Monthly premiums are guaranteed to remain the same through out the term of the policy

Family Income benefit Examples

Example1
Adam is 35 next birthday and is a non-smoker. He wishes to take out a 25 year level term insurance plan for £250,000.

If Adam did so the monthly premium would be £19.75; if Adam took out a Family Income Benefit plan for the same monthly premium he would secure an income of £22,152 per annum for his family.

That is equivalent to a total potential income over the life time of the policy of £553,800 over 120% more than the level term insurance cover for the same monthly payment.

Example 3
Jack is 35 next birthday too, and a non-smoker, with a mortgage of £100,000 and two children under the age of 5; he wants to ensure that they are provided for until they reach the age of 20.

If he were to die or suffer from a critical illness during the term they would receive £15,000 a year for a 20 year term, which equates to £300,000, plus a lump sum of £100,000 to cover the mortgage; if he took out level term insurance with critical illness, for £400,000 the premium would be £107.70 a month.

However, he could take out a level term insurance plan with critical illness for £100,000 and family income benefit with critical illness, with an annual benefit of £15,000 per year. The total premium would be £29.20 for level term insurance with critical illness and £40.00 for the family income benefit with critical illness; which amounts to a saving of £38.50 per month and a saving of £9,240 over the full term of the policies.

Example 2
John is 35 next birthday and is a non-smoker who has a budget of £20 a month over a 25 year term.
If he took out level term insurance cover, the sum assured would be £253,805.

With Family Income Benefit he would get a yearly benefit of £22,476 a year which means, that if he dies in year one, his family would receive a total benefit of £561,900. If, he dies later on in the plan then the benefit to his family would be significantly less.