Military family income benefit
Family income benefit is one of the least expensive forms of life insurance. It differs from most other types in that it’s designed to pay out, in the event of death, as an income rather than a lump sum – although there may be the option of a lump sum depending on the policy.
An often-overlooked type of cover, family income benefit provides a level of income for a fixed term. In the event of the applicant’s 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 more cost-effective than you may think.
Depending on your circumstances, indexation might be an option for this type of plan. That would link the amount paid out to some measure of inflation (typically the Retail Price Index). This protects the purchasing power of the payout. If you choose indexation at the outset, the premiums and benefit will rise annually, normally by Retail Price Index.
Key facts about military family income benefit
Before taking out any form of finance or insurance product, you should take professional advice. At Forces Advice, we understand the needs of service personnel and their families. Our comprehensive knowledge of the insurance market allows us to give you personal recommendations. However, there are some features that you will typically find with a military family income benefit policy:
Flexible payouts: In the event of a claim, income can be paid monthly, quarterly or annually
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.
Extra cover options: 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, heart attacks, and strokes.
Affordability: military family income benefit is a low cost, tax efficient solution to family protection.
Why choose Forces Advice for your military family income benefit insurance quotes?
Forces Advice was established and is run by Martyn Barberry and John Sykes who both enjoyed careers in the British Armed Forces before qualifying and working in the finance and insurance sector. Combining their understanding of the insurance needs of British servicemen and women with an in-depth professional understanding of insurance products, they established Forces Advice Limited.
We offer a range of products from a carefully selected insurers.
As a member of SIIAP, we endeavour put the serviceman and their family first with quality cover that fits your particular needs. You can check our details on the Financial Services Register. Our firm reference Number is 622403