This type of cover is one of the most effective ways of providing for your family should anything happen to you. It’s designed to provide an income if you die during the term of the policy, so that your family can continue to receive regular payments to live on until the policy ends.

The income could be paid either monthly, quarterly or yearly, and often it’s possible to specify that your family receive a one off lump sum instead. A combination of the two may also be available.

Pros

• It's a relatively cheap form of life insurance.
• It can help to provide financial security for your family with regular payments free of income tax and capital gains tax if you die during the term of the policy.

Cons

• Income is only paid for the fixed term of the policy, so the nearer the end of the policy you die (if you do), the fewer years it pays out for.
• If your family doesn't make a claim before the policy finishes, the cover ends and they don’t get any money back.

Family Income Benefit can give you and your family peace of mind. If you die during the term of the policy, they will have some financial support in the form of a regular income, or a one off lump sum.

If you want to research the market for yourself, take a look at insurance companies, banks, building societies and other financial companies. You can also usually buy direct through the Internet or over the phone, or you can speak to a financial adviser.

Think about it – Make sure you’ve thought carefully about what you want and taken into consideration any cover you already have or cover you are entitled to from your employer. You don’t want to be paying for more cover than you need.

Check the small print – Make sure you understand what is and isn’t covered as these can vary from company to company.

Consider all your options – Ask what’s available and make sure you understand all the extra options.

Shop around – Different companies offer different levels of cover at different prices. Make sure you shop around and that the cover you choose is the most appropriate for your needs and circumstances.

If unsure get advice – If you’re unsure of what to do next, speak to a financial adviser who will be able to help you make the right choice.