Independent Financial Advisers Authorised and Regulated by the Financial Services Authority | Contact | About Aisa Direct | © Aisa Direct Ltd 1999–2009
AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Services Authority in the UK only.
1/2 Fordbrook Business Centre, PEWSEY, Wiltshire, SN9 5NU Registered in England: 3621676
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This website contains information which may or may not be applicableto your own situation and circumstances.
Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.
FAMILY INCOME BENEFIT
Family Income Benefit provides a replacement income in the event of your premature death that could be paid monthly, quarterly or annually. Protection is provided for a fixed term specified at outset. In the event of a claim benefits are payable for the remainder of that term, so in effect the potential benefits from the contract are reducing over time.
However, due to the reduced exposure to the insurer over time, it can reduce the premiums when comparing it like with like against whole of life and some term assurance.
Aisa Direct has a life assurance calculator that can work out how much needs to be invested as a lump sum to provide the same benefits as a family income policy.
Types of cover
Guaranteed cover: under this plan the rate at which premiums are payable is guaranteed by the insurance company for as long as you maintain contributions. In the long term this can be an extremely valuable feature.
Reviewable cover: under this plan premiums are kept to a minimum as you, rather than the insurance company, are shouldering the risk of changes in morbidity experience. The insurer has the right to review premiums based on claims history, which could mean premiums increase significantly at a review. Reviews are normally carried out every five years but may vary from one insurer to another.