Family Income Benefit is another form of decreasing term assurance, whereby an amount is paid each year for the term of the policy in the event of the death of the life assured. So, if someone is insured for £200,000 over a 10 year term, and they die after 5 years, the policy will pay £20,000 per annum for the remaining term. In other words the policy can provide an income for remaining years, whilst a standard decreasing term assurance will provide a one of lump sum at death.
Much depends on an individuals circumstances as to which type of life cover is the most appropriate at any given time, and this can and almost certainly will alter as the family unit changes and different stages of life are reached.
It is, therefore, important to keep life cover under review on a regular basis, to make sure that adequate is in place, it covers the right things, and that you do not have unnecessary or incorrect cover.
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