Finally we are taking matters into our own hands!

Friday, March 12, 2010

With the current state of the economy and the government’s apparent inability to deal with it, it would seem that the last thing that we would want to do is to put our loved ones’ financial well-being in the hands of the government. Well, it would seem that finally the British public is going about helping themselves in order to provide for their family after death.

This can be very clearly seen by the recent goings on at Scottish Provident. They have recently reported a fourfold increase in sales of their family income benefit programme, which will ultimately ensure that the family receives regular income payments. I for one think that people should be applauded for taking matters into their own hands and would urge you not to miss the boat.

The main reason that family income benefit plans have been proving so popular with people is because of the fact that they can go as far as to take 40 percent out of the price of life insurance. Basically people want to take care of their family but don’t want to pay a premium to do it.

Here is how it works. If you have a mortgage of £150,000 over a 20 year term and do not smoke then you would be paying £71.86 for a lump sum life insurance policy.

On the other hand, if you were to opt for an Income Benefit plan, your family would receive monthly income payments equaling £7,500 pounds a year over 20 years. This benefit, you would receive for only £29.64. This is a savings of £42.22 per month.

In tight times such as this we need to make sure that we choose options that make sound financial sense. This belief by Scottish Provident is clearly represented by comments made by Susan Barclay, Head of Marketing. She stated, “Budgeting for the future involves creating a sensible financial plan, while not sacrificing valuable cover that may be vital in protecting a family in both the short and the long term… Our family income benefit plan will provide a steady income to pay any remaining mortgage, and provide a family with the finances they need to help create a clear budgeting plan for the future.”


Bob McLaren