An often-overlooked type of cover, Family Income Benefit protects a level of income for a fixed term. In the event of death the amount of income chosen at the outset will be paid for the remainder of the term of the plan. Often the term is set to protect you until your youngest child is 18 or 21. This protection is not as expensive as you may think.
Depending on your circumstances, indexation might be an option for this type of plan to protect the purchasing power, although the benefit can be level. If indexation is elected at the outset, the premiums and benefit would rise annually, normally by Retail Price Index.
Family Income Benefit is one of the least expensive forms of life insurance and differs from most other types in that it is designed to pay the benefit, in the event of death, as an income rather than a lump sum, although there may be the option of taking a lump sum depending on the policy.
In the event of a claim, income can be paid monthly, quarterly or annually and under current rules the income is tax-free. This makes it ideal for Family Protection where a family are looking to insure the main breadwinner over a specific term, for example to his or her retirement age.
Family Income Benefit can also include Critical Illness Insurance which is designed to pay the selected income if the policyholder is diagnosed with a critical illness within the chosen term. Critical illness conditions vary from insurer to insurer but in general include such conditions as some forms of cancer, some forms of heart attack, and stroke etc. In addition to these "core conditions" applicants can also select comprehensive cover which usually includes 25 to 30 additional conditions.
Family Income Benefit therefore should be considered when looking to effect insurance for Family Protection. Family Income Benefit is a low cost, tax efficient solution to Family Protection.
Please be aware that in some cases this type of assurance is based on an assessment of the health of the applicant.
THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.
CRITICAL ILLNESS PLANS MAY NOT COVER ALL THE DEFINITIONS OF A CRITICAL ILLNESS. THE DEFINITIONS VARY BETWEEN PRODUCT PROVIDERS AND WILL BE DESCRIBED IN THE KEY FEATURES AND POLICY DOCUMENT IF YOU GO AHEAD WITH A PLAN. TAX PLANNING ADVICE ISN’T REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
“Fantastic financial guidance again by John. His assistance has proved invaluable in our house move. The clerical support was also great and nothing was too much trouble.”
“As always, excellent service from John. Faultless and always on hand to answer all of our questions and address any concerns we had. Thank you.”
“Many thanks John! I’ve really appreciated your availability outside of normal working hours.”
“I would highly recommend JWC Financial Solutions. Extremely professional and very helpful. Willing to go the extra mile. Thank you!”
“Thank you John. Very helpful, compassionate and professional.”
“John has handled all of our most important financial matters over many years and is a trusted friend. He always gives the most appropriate advice to match each given situation rather than just what someone may wish to hear.”
“I found John to be very helpful and conducted himself in a very professional manner. I would recommend his services to other friends and family.”
“Excellent service, listened to our needs and swiftly found us an appropriate mortgage.”
“I feel John Connor listened to what I required, acted fairly and established a good level of trust between us.”
“Excellent service – dealt with all queries promptly and efficiently.”
“Thank you for the beautiful roses and card delivered by hand to our new home! It was a lovely surprise and welcome! You have been very patient too over a process that seemed thwart with difficulty throughout. Thank you for all you have done in arranging the mortgage. Very best wishes.”
"We remain eternally grateful for the very valuable, sound advice and help you gave to us during one of the most stressful and traumatic periods of our lives – when we had to help our son in his efforts to secure a home. We always keeping you mind and we always recommend you. We wish you every success."
"Many thanks for sorting us out. You’ve been great!"
"Thank you for all your help, guidance and expertise. You have been a real help guiding us through the unknown. We are very grateful."
"I met John Connor - IFA to discuss the purchase of a property and the various mortgage options available to us. John was incredibly knowledgeable of the products available, listened and understood our financial situation, and offered us simplified advice that we could understand in order to make relevant choices. John even advised us on planning for the future with policies that did not cost extra money but meant our property and assets were safe. John was always available and went the extra mile on several occasions.
"We have always found the service John provides to be reliable, honest and professional.
He is extremely conscientious, hardworking and we would highly recommend him."
"We have used Mr John Connor's services over many years to arrange both mortgages and insurances for all of our family.
We have found him to be honest, efficient and able to find the best products to our needs.
We will certainly use him again and would happily recommend him to anyone.
Regards,
Bryn Davies"
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Read moreCONTACT US
JWC Financial Solutions
1 Hagley Mews
Hall Drive
Hagley
Worcestershire
DY9 9LQ
T: 08435 070097, 07730 070097 or 01384 660097
Email Us
Registered Office: Hartle Croft, 20 Hartle Lane, Belbroughton, Worcestershire, DY9 9TJ
Registration Number: 08317734
Registered in England
JWC Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority. JWC Financial Solutions Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 649801.
The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
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