Family and Personal Income Plan – Overview

A plan designed to provide a monthly benefit on death or diagnosis of a terminal illness (if life expectancy is less than 12 months) of the life assured during the term of the plan. A commuted lump sum may be chosen at claim.

Premiums are guaranteed.

 

Target market

Family protection

Where a monthly benefit is required to provide financial support to spouse, partner, registered civil partner or dependant in the event of death or becoming terminally ill. Lump sum can be chosen at claim stage.

Suitable if customers

  • Require a monthly benefit paid in the event of death, or terminal illness (if life expectancy is less than 12 months).
  • Need a sum to cover family needs in the event of death, or terminal illness and have dependants and are not willing to self-insure or do not have funds elsewhere.
  • Have medical conditions that do not prevent provisions of cover.  
  • Are happy to be underwritten and can afford relevant monthly premiums for term cover.      
  • Are UK residents.

Unsuitable if customers

  • Need a decreasing sum to cover a mortgage in the event of death or terminal illness and have no dependants and are willing to self-insure or have sufficient funds elsewhere.
  • Want a product to pay a benefit if unable to work for a period of time due to accident or injury (IPB).
  • Have health conditions that may result in cover not being issued.
  • Require a non-underwritten journey.
  • Are unable to afford the monthly premiums for term cover and are not UK resident.

Amount of Cover

  • No minimum monthly benefit. Driven by minimum premium.
  • Maximum monthly benefit is £10,000 per month.
  • The amount of cover remains the same throughout the policy term.

Term

  • The minimum term allowed is 5 years.
  • The maximum term allowed is 40 years.

Age restrictions

  • The minimum age to take out a policy is 18. It is possible for a life or another policy to be taken out on a 17 year old by an adult with insurable interest. This policy can then be placed in an Absolute trust with the 17 year old as the beneficiary.
  • The minimum age at the end of the policy is 29.
  • The maximum age for buying a policy is 64.
  • The policy must end by their 70th birthday.

Premiums

  • Guaranteed
  • Payable monthly or annually by Direct Debit.

Options available

Benefits automatically included

Other information

  • For joint life policies, benefit is paid on the first death.