Survior's Income



Sometimes also referred to as Family Income Insurance, Survivor's Income insurance is a payment of a regular monthly income to your surviving family upon your death or diagnosis of a terminal illness.

When you think about your family, would they be able to fend for themselves if you were not able to provide for them? This kind of insurance is suited to young families where one parent maybe forced to stay home and care for children while the other parent works to provide for the family. If one of the parents were to become disabled or unexpectedly die, apart from the tremendous strain of losing a parent, the financial burden left behind maybe even more difficult to overcome.

Survivor's Income insurance alleviates this risk and gives you assurance that a regular monthly income for those who depend on you most if you die or become totally and permanently disabled will be provided.

Survivor's Income insurance is an ideal complement to lump sum insurance as it relieves problems frequently associated with lump sum payments at a time the survivor may least be able to cope. Lump sum payments are a great way to meet immediate costs, but as some people who win the lottery will tell you, a large sum of money can be mistreated and lost quickly if proper financial decisions are not made when the money is first received.

Losing a loved one is not an easy thing to go through and making such decisions is generally not something one first thinks about. Having a Survivor's Income benefit can help you with your every day costs so that you have more time to figure out:

  • Where to invest the money
  • How much to withdraw
  • Taxation complexities
  • Dealing with demands from family members
  • Ongoing monitoring and administration costs

Like most insurance products, this can be bought on its own or as part of your Life Insurance.

Contact an InsuranceNet Adviser for more help.