Would you prefer Life Insurance to pay the family an income?
One of the innovations in life insurance in recent years that remains a bit of a mystery to many is a type known as “Family Income”, or “Family Protection”. It is life insurance that works the same way as other types of life insurance to get a claim, but the method of paying it out is very different. Instead of paying one large lump sum of insurance to a grieving family, it pays it out an agreed rate per year, for an agreed number of years.
Many families would far rather receive a regular income over a period of time, rather than that one large lump sum. For many, it seems as though the money magically lasts longer as it is far easier to budget and use the payment wisely. When a family has a life insurance claim, no matter which family member it is that has passed away, it is a time of the worst emotional stress.
The burden of tough decision making with large amounts of money suddenly just adds further stress and pressure. Even at the best of times investing or using a large sum of money wisely can be intimidating.
With Family Income insurance it supplements any other life insurance or disability income protection insurance you might have. That is, it gets paid in addition to those other insurances. Many people are beginning to use both lump sum life insurance policies together with this cover so that in the4 event of a tragedy the family can pay off the mortgage and any large debts, and also have an ongoing income.
Isn’t that what you really want life insurance to do?
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