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Family Income Benefit Insurance Can
Include Critical Illness Cover |
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For many having a lump
sum in the event of a critical illness
is a good and also a bad thing. The
problem is that the
critical illness cover payout should
be used to either pay off a mortgage,
replace lost income until the plan
holder recovers or be used to pay for
expensive treatment not covered under
NHS rules.
However in many cases the insured may
recover quite quickly but return to a
lower paid occupation or never return to
work at all due to health issues. If
this occurs then the monthly income of
the household will take a big drop.
Family Income Benefit policies try
to solve the problem of having a lump
sum that is often wasted. Another issue
is that the insured is often not
financially savvy and may not know about
investments and may waste or lose some
of the monies. Instead a family income
benefit policy that includes critical
illness will pay the insured a monthly
income until the plan ends.
At the beginning of the family income
benefit policy with critical illness the
proposer will choose what monthly or
yearly income would be required. They
will also choose how long the cover will
be needed for. If the insured has young
children then in many cases this will be
until the children are dependent at age
18 or 21.
Definitions covered are usually the same
as other
critical illness definitions. These
policies will normally cover death or
life insurance also. If the plan is set
up on single basis then it best to have
the policy set up in trust. However
because the policy also includes
critical illness the trust should be a
discretionary trust. This way if the
claim is for critical illness then the
sum assured would be paid to the
policyholder. However if the claim was
for death then the claim would be paid
to the beneficiaries of the trust.
To ensure the plan you choose is right
for you and your family it is best to
speak to a financial adviser. Use the
form on the right to enquire and get
quotes. All the advice you receive will
come from a qualified financial adviser. |
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| Quotes in 3 easy steps: |
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1. You complete the simple form
2. We search the whole of the market
3. You receive quotes |
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- Cover starts from as little as *£5 per month
- Quotes are FREE and without obligation
- We can put policies in trust for
free.
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| We compare the leading insurers including: |
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Useful Website Sections: |
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Popular Critical Illness Articles: |
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*£5.00 Per month quote based on 25 Year
old female Non Smoker for £102,740
guaranteed level life cover only for
term of 25 Years.
**Take out life insurance before 31st
December 2010 and receive a £25.00 gift voucher. Voucher sent
once 3 months premiums are paid. If you
cancel within this period the voucher
will not be paid. One voucher per
customer. |
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