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Honestly about life insurance
There’s a lot of insurance companies are out there offering life insurance products. We all know, that life insurance is a financial product that pays out a cash lump sum to your loved ones when you die. It is basically a contract between an insurance policy holder (the life insurance company) and an insurer or assurer (you, me, anyone who takes. out life insurance), where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.
Why is it good to have a life insurance? Because most of us have families we look after so when we die, we want them to be looked after and ensure they have everything they need. Life insurance can be a crucial safety net for families.
The products and policies of different life insurance companies vary.
LifeSearch are an amazing company with an award winning team dedicated to protecting the people we love and allowing them to continue living the lives that they love. In 1998, they decided to do something unique in financial services. LifeSearch proper began in 1998 when Tom and business partner Arthur Davies decided to build a financial services company that would avoid the tricks and the shortcuts, the hustle and the squeeze. They would do right by the customer. (Yeah, all say that I can hear you thinking. Read on!)
Family Income Benefit
So they build a new concept called Family Income Benefit, currently one of LifeSearch’s most popular products. Family Income Benefit is a bit different to other life insurance products in that it doesn’t pay out a lump sum, but instead it provides the beneficiaries with regular, tax-free income – either monthly or quarterly, to help cover household and living costs when the main earner isn’t around anymore. Family Income Benefit helps to cover your family’s living costs with a monthly or annual payment, making it easier for them to manage
How it works
First of all, you choose how long you want your term to last. For young families like us, this could be until the children are financially independent and would no longer need the income payments. Let’s say for example you choose to have a 20 year term. If you died a month into this term, the payments would begin from the date of death all the way through to the end of the term – for 20 years, minus a month. If you died 15 years into the term, the payments would again begin from the date of your death but only pay out for 5 years, because this is what is left of the term. So this is why it’s perfect for new parents with young children looking for that extra peace of mind and protection.
The regular payments as opposed to a lump sum payout means that no one is left to deal with a large, overwhelming sum of money, like with a traditional Life Insurance policy. Losing a loved one is hard enough, without then having to suddenly deal with a huge amount of finances. This way, the money is made manageable and budgeting becomes simple.