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Protecting your client and their family
You’ll know from setting up life insurance for your client that the lump sum payment can be vital for keeping a roof over their head. But your client’s family will struggle to meet day-to-day living costs, even if larger financial liabilities – like a mortgage – has been paid off.
Family Income Benefit is an affordable way to plug this protection gap for your clients.
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:
- Inflation-linked cover is available, maintaining the buying value of the income in the longer term.
- 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.
- Terminal illness benefit is included as standard throughout the term.
- Guaranteed Increase Option is available for a variety of specified life events.
- 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 profileHere’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.Here are some important things you should know about our Family Income Benefit cover:
- If your client chooses level cover, it won't keep up with inflation and could buy less in the future.
- There is no cash in value at any time.
- If your client stops paying their premiums, cover may cease.
- 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.
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.
10% uplift with 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. Plus you’ll get a 10% uplift on top of your agreed commission levels.
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:
- Award winning claims performance. We’re proud of our claims performance, approving 94% of all protection claims in 2019. That means you’re recommending a provider that pays out when your client really needs it.
- Guaranteed increase options. Your client can increase their cover [link to policy conditions] 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 phoneline.
LV= Doctor Services
Your clients get even great support with us. Your clients have access to 6 expert medical advice services through LV= Doctor Services – all accessible by app or phone:
- Remote GP 24/7. Speak to a UK doctor about any health or medical concerns by video or phone consultation.
- Discounted health MOTs. Your clients can get 25% off health assessments – identifying risks and areas for improvement.
- Prescription services. Get a private prescription without the need for your client to visit their local GP.
- Second opinion. With face-to-face or video consultations, your client can check a diagnosis and get advice on treatment options with a UK medical specialist.
- Remote physiotherapy. UK physiotherapists are on hand to offer a bespoke treatment plan via video consultations. Members get free sessions.
- Remote psychological support. With free sessions, your client can benefit from mental health support - including counselling and Cognitive Behavioural Therapy.
Member benefits
With Family Income Benefit, your client can also choose to become a member. That means they’re entitled to exclusive benefits and support, at no extra cost:
- Generous discounts. Your client will be entitled to discounts on general insurance products provided by LV= General Insurance Group, a subsidiary company of Allianz Holdings plc – like car, home and pet insurance.
- Member Support Fund. If your client falls on hard times they can request financial assistance.
- Member Care Line. When your client needs peace of mind, the Care Line offers access to confidential legal advice, trained nurses and qualified counsellors.
- Members right to vote. Your client will be invited to attend our AGM – so they can have a say in our annual general meetings.
We paid 99% of life protection 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 99% of protection claims in 2019. 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.
View our full 2019 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.
Plus, our expert tele-interviewing service saves you time and makes applications hassle-free. 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.
Learn more about Fastway.
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