Understanding the ins and outs of all life insurance policies, including those policies that are less popular, could have a major benefit for British people looking to get life insurance . The news follows reports last week that life insurance intentions are very different to the actual benefits provided by policies.
For instance, many policyholders would like their beneficiaries to be provided with a regular monthly income in the event of their death, as opposed to a cash lump sum. However, only tiny proportions opt for monthly income policies, known as Family Income Benefit.
Emma Walker, the protection manager for a price comparison site who has investigated this issue, highlighted the potential tax benefits. The moneysupermarket expert reportedly said: "Family Income Benefit is paid out tax-free to dependents, whereas being forced to invest a lump sum up-front for income could well trigger significant tax payments. It is important that consumers understand exactly what they are buying and I recommend reading the small print and comparing as many policies as possible for both value and cover provided."




