Family Cover Life Insurance

There is a statistic that all should be made aware of whilst searching for family life insurance. Around one child in thirty loses a parent before they grow up. This hard hitting loss can have financial implications for any son, daughter or any family member.

Family life insurance is one of the cheapest ways to protect your finances should the worst happen.

Family life insurance is all about protecting your family and its finances which means you can decide what sort cover you require and for how much per month. Health and ages are taken into account to calculate your monthly premium and how long you require the cover to last is up to you, putting you in control so you are covered for a period of time that suits you.

Also see: Death in service life insurance

• Flexibility relating to the way in which the death benefit is paid out. This can be paid out as a lump sum or as monthly instalments and it can be arranged to suit the needs of you and your family.
• How long you require the cover is up to you, this will ensure your covered when it suits your needs.
• The policy is affordable cover- The cost of family life insurance is affordable which makes it possible to secure the future of your family.
• Cash lump sum benefit- Decide how much cover you require when you take out the policy. Also if you were to be diagnosed with a terminal illness 12 months before the policy is due to expire most insurers will pay out a lump sum benefit (terminal illness benefit).
• Monthly payments- Your premiums should not increase even if there is a change in circumstances (health etc).
• Joint policies - Joint policies are available and will pay out on the first death.
• Length of cover - You choose how long you require the cover for from 5 up to 50 years.

Family life insurance cover is a further phrase of describing life insurance, and it works by paying either a lump sum or a regular monthly payment benefit (this is more common with the family life insurance policy) should the policy holder's die or become ill. These benefit payments act as a safety net once the policy holder has passed away to help your family, especially if you are the main breadwinner.

If a death occurs within the agreed term time of the policy or there is a diagnosis of an illness that meant a life expectancy of less than 12 months the death benefit would be paid.

The main family insurance policy is the family income benefit policy, this policy would pay the death benefit as a monthly instalment to your family should you die. The main benefit to this policy is that you would be able to dictate how much the family earns per month. For example if you are the main breadwinner and you were to earn £2,000 a month, you could ensure that the same amount is paid per month to your beneficiaries.

Also see: Guaranteed acceptance life insurance