We all work hard to achieve our goals, and along with that, we strive to keep our family financially sound. However, insecurity will dominate you if you think for a second, “what if something happens to me, who will take care of my family?“. If you have a family income protection insurance, maybe you can get rid of this fear and live the moment peacefully. Family income protection insurance will help your family from financial troubles by providing a regular monthly income in case an unfortunate event happens to you.
How Family Income Protection Insurance works?
Family income protection insurance works by providing the beneficiaries with a regular income from the time of death of the insured to the end of the policy term. Usually, the income is tax-free, and the amount can be utilized for any purpose. The premiums are usually paid annually or monthly by direct debit. Critical illness plan can also be added to this policy as it would provide a regular income in case of serious illnesses.
Why would you need Family income protection Insurance?
This policy is apt for people with young families who wish to protect against loss of income provided by the parents. Hence, it can provide financial protection until the children become independent. The benefits usually include a death benefit and maturity benefit. The death benefit will be received for the nominee in case of death of the insured person. The nominee will receive a regular income for the benefit pay-out period. In case nothing happens to the policyholder, he/she would be eligible for maturity benefit. The terms of maturity benefit will vary depending upon the insurance provider.