The aim of family protection is often to replace income lost on the death of the breadwinner. A family income benefit policy is designed to meet this need by providing income rather than a lump sum. The policy pays out a tax-free regular income (monthly or quarterly) from the date of death of the life assured until the end of the chosen term. As an alternative to regular income payments, beneficiaries may choose to receive a lump sum payment that will be calculated as a discounted value of the outstanding instalments.
The aim of family protection is often to replace income lost on the death of the breadwinner. A family income benefit policy is designed to meet this need by providing income rather than a lump sum. The policy pays out a tax-free regular income (monthly or quarterly) from the date of death of the life assured until the end of the chosen term. As an alternative to regular income payments, beneficiaries may choose to receive a lump sum payment that will be calculated as a discounted value of the outstanding instalments.