What will the cost of Family Income Benefit be?
The exact family income benefit cost depends on multiple things. The main factors affecting price are the policy term, your age, your health, and the payout amount you decide on.
Policy term and payout amount are two things you decide on. Remember, if you die outside of the policy term no income benefit is paid. And, whilst you might want a large payout amount, this comes at a cost.
So, before you decide on these two factors, get in touch with an expert for advice.
Your health and age also impact the price, but often people have little control over these. Diabetes and other health problems, in addition lifestyle factors such as smoking impact price.
This is because they affect your risk of death.
If you are likely to die earlier in your policy your insurer is more likely to have to start payments earlier in the term of the policy. So, they payout more for people in poor health, on average. Because of this, your insurance premiums are likely to go up if you are considered in poor health.
In a similar way, older people often have higher premiums written in their terms. So, you might want to consider taking out a plan sooner rather than later.
The good thing is, out of all the types of life insurance, family income benefit is normally cheapest!
With this type of policy the insurance company only makes small regular payments. These only continue for the remaining duration of the policy. This is why family income benefit is normally the cheapest service, compared to other types of life insurance.