Generally family income benefit insurance turns out to be cheaper than the conventional life insurance policies whereby in the event of the policy holder’s death the insurers pay out the claims on a monthly basis. Many people think that it would be better to opt for a conventional life cover that promises their family a lump sum in the event of their death. However it is the family income benefit cover that assures a regular source of money for your family, which could have been over spent in case it had been shelled out in a lump sum. So from the very outset you need to develop a different kind of mindset about approaching the kind of insurance protection you want for your family. Do not just jump into an insurance deal without identifying you needs properly. You can also stay a little alert about the spending habits of your family if you are not being able to make up your mind as to the kind of insurance cover you want to opt for—- Life Insurance or a Family Income Benefit Cover. A Family Income Benefit Insurance, it might be mentioned here, aids you in assuring a fixed sum for your family every month. This helps as you can never predict future trends— uncontrolled spending is prohibited as the entire sum is not paid at one go thereby making your family members more self sufficient. Let us find out how you can approach a family income benefit protection:
Research: As you have acquired a fair idea of what a family income benefit cover is you should compare the premiums provided by each insurance carrier in the market. Find out what percentage of your income will be paid back to your family each month after you die. See if all the insurance companies are promising the same amount or not. Comparing the premiums only will not suffice in this regard. Check out the scheme in its entirety and then settle for your preferred carrier.
Critical Illness Cover: Know for a fact that you can add the Critical Illness Cover to the policy. In that case if you are diagnosed with a specific critical illness then an income would be produced in a monthly, quarterly or yearly basis as is suitable. In case you are diagnosed with such a disease and have a partner who will not be able to cope with the expenses you should not depend solely on a Life Cover here.
Family Income Benefit Quote: While you are researching on the Family Income Benefit Insurance online you will be provided with a Family Income Benefit Quote. Do not forget to avail the opportunity of spelling out the free insurance quotes online.
Consider the possibility of indexation for your cover: Indexation of the cover availed by you is important as it will protect it from the adverse effects of Inflation. Both the sum assured and the term of the policy should be clearly given proper thought. If for instance you have two children aged 10 and 15, the policy term can easily be 15 here whereby both your older and younger children are sufficiently grown up to fend for themselves. If you have a mortgage protection policy make sure your family has the minimum income required to keep things in place after the mortgage has been repaid by the mortgage protection policy.