Family Income Benefit:
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Protecting your client and their family
You’ve probably set up life insurance for many of your clients to cover those larger financial liabilities like a mortgage. That lump sum payment may be vital to keep a roof over their heads. But a family will still struggle to meet day-to-day living costs even if the mortgage has been paid off.
Family Income Benefit is an affordable way to plug this protection gap for your client.
It’s designed to pay out a tax-free monthly income until the end of the term, on the death of the life assured or diagnosis of a terminal illness. It’s available as part of our Flexible Protection Plan – either on its own, or combined with other policies. As a menu plan, our Flexible Protection Plan allows you to mix and match different types of insurance options for your clients.
The main features of Family Income Benefit include:
- Pays a convenient monthly income which can be converted at any time during a claim to a reduced lump sum.
- Premiums are guaranteed throughout the term – no reviews, and the minimum premium is £5 per month.
- Inflation-linked cover is available, maintaining the buying value of the income in the longer term.
- Terminal illness benefit is included as standard throughout the term.
- Guaranteed Increase Options are available.
- Includes ‘Pay My Mortgage’ facility which enables the beneficiaries of the policy, depending on their individual circumstances at the time of claiming, to have all or some of their monthly income paid directly to their lender to cover their regular mortgage payment.
Product profile
Our Family Income Benefit helps to replace your client’s income if they die or become terminally ill. Details on what’s covered, eligibility, costs and key information can be found in the product profile:Waiver of Premium product profile- If your client chooses level cover, it won't keep up with inflation and could buy less in the future.
- If your client stops paying their premiums, cover may cease.
- There is no cash in value at any time.
- We won’t pay a claim if your client dies as a result of intentionally taking their own life within the first 12 months of their policy.
Here’s how you can position Family Income Benefit for your client:
Day-to-day bills
Bills like childcare or utilities will still need to be paid if the main earner or homemaker dies. Younger families are particularly vulnerable. Family Income Benefit can ease the financial burden.
For renters
1 in 5 people rent the property they live in, and for many this is a longer-term option. Renters still need the right cover in place should their partner or spouse dies. If this happens, Family Income Benefit can help pay rent and bills.
Divorce maintenance payments
If one of the divorce partners dies, maintenance payments could be at risk. A Family Income Benefit monthly income payment ensures children are brought up securely, without any financial worries.Day-to-day bills
Bills like childcare or utilities will still need to be paid if the main earner or homemaker dies. Younger families are particularly vulnerable. Family Income Benefit can ease the financial burden.
Future prospects for children
If the worst happens in a single parent family, the future prospects for children can be greatly improved with a monthly income payment. It’s payable to the guardian who supports the child as they grow.
Education fees
Parents always want the best for their children, and the monthly income payment could make all the difference in maintaining a child’s education on the death of your client.
The cost of care
If your client is a full-time carer for their loved one, and they’re suddenly no longer around, the monthly income can continue to fund home care or other care costs.Future prospects for children
If the worst happens in a single parent family, the future prospects for children can be greatly improved with a monthly income payment. It’s payable to the guardian who supports the child as they grow.Family Income Benefit cover options
Level cover
Your client’s annual amount of cover, and the premium they pay, is fixed when the plan starts and won’t change. Cover won’t keep up with inflation and will buy less in the future.
Inflation-linked cover
The amount of cover will go up in line with inflation (RPI), and the premium will go up by RPI x 1.5. If we're paying a claim the maximum annual increase is limited to 12%.Level cover
Your client’s annual amount of cover, and the premium they pay, is fixed when the plan starts and won’t change. Cover won’t keep up with inflation and will buy less in the future.
Guaranteed premiums
Family Income Benefit cover only supports guaranteed premiums. This means your client’s premiums are fixed and won’t change unless it’s inflation-linked cover. With inflation-linked cover both the premium and annual amount of cover will only increase by the rate of inflation each year.
Fastway Fastway is your solution to quick and easy applications. Supported by intelligent online underwriting – you’ll see the benefit of our online quote and apply system.
Flexible protection
Family Income Benefit is part of our Flexible Protection Plan - it can be applied for on its own or along with other policies in our menu plan. Adding more than one cover to a plan can make it more cost-effective as we’ll offer a small discount.Choosing us for Family Income Benefit
We know that being a respected provider isn’t just about the right product – but also about offering the right support. We place you and your clients at the heart of all we do:
- Strong claims performance. We’re proud of our claims performance, approving 96%* of all protection claims in 2021. That means you’re recommending a provider that pays out when your client really needs it. * Includes claims already in payment in 2021 for Income Protection and Personal Sick Pay.
- Guaranteed increase options. Your client can increase their cover without medical underwriting within certain limits - so if they change jobs, have or adopt a child, or get married/enter a civil partnership, their cover can change too.
- Member benefits. With Family Income Benefit, your client can agree to become a member – they’ll be entitled to a fantastic range of benefits and support.
- Better underwriting. We support you in providing the best financial advice to your clients. That’s why we offer strong underwriting - online for an instant decision, flexible medical arrangements, covering the cost of medical underwriting and a dedicated underwriting phone line.
LV= Doctor Services
We’re here for your clients when they need us most. Your clients and their spouse/partner* have access to 6 expert medical advice services – all accessible in a handy app or by phone, wherever they are:
- Remote GP 24/7. Unlimited consultations with a UK doctor available by phone or video.
- Prescription services. Get a private prescription without the need for your client to visit their local GP.
- Second opinion. Check a diagnosis and get advice on treatment options with a UK medical specialist by video or face to face consultation.
- Remote physiotherapy. Up to five free sessions** with a trained UK physiotherapist and receive a bespoke treatment plan through video consultations.
- Remote psychological support. Up to five free sessions** of mental health support including counselling and Cognitive Behavioural Therapy from a network of highly trained therapists.
- Discounted health MOTs. Benefit from 25% off health MOTs - a service that provides an assessment of overall health, identifying any risk and areas of improvement.
*Spouse, civil partner or person with whom the policyholder lives with as a partner and at the same address.
**The five sessions limit is split between the policyholder/life assured and partner/spouse.
Benefits, exclusively for members
With Family Income Benefit, your client can opt to become a member. Being a member means they can get access to exclusive member benefits and additional support services.
We paid 96%* of all claims
We offer a clear and fair approach to paying claims – and believe anyone can be affected by terminal illness, regardless of age or lifestyle.
We’re proud to have paid 98%** of Life Protection claims in 2021. A successful claim is as important to your client as it is to you - your clients get vital financial help when they need it most and you feel confident in the provider you recommended.
* Includes claims already in payment in 2021 for Income Protection and Personal Sick Pay.
**Our life insurance figures include claims paid for Life Insurance, Terminal Illness, and Whole of life products (including some non-underwritten guaranteed whole of life products). Our whole of life policies are no longer available.
View our full 2021 claims performance
Dedicated support for you
Fastway - our quote and apply system – makes it easier to protect clients. It’s a fast and flexible application journey and gives you an immediate underwriting decision.
Our UK-based team collect accurate information, reducing the risk of non-disclosure and taking the worry and responsibility away from you. Avoid long delays with GP reports - so your client could be underwritten and accepted quicker.
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