Often called a life insurance policy with a difference, the family income benefit cover is a fairly new addition to the insurance industry. It pays out benefits to the dependents of the insured after his death in the form of a monthly income and not as a lump sum.
The beneficiaries will receive the payment only if the policyholder dies within the term of the policy and not after it has expired.
If you have opted for a cover spanning 15 years and you die within the 11th year of that time period then your family will receive the payouts in the form of monthly income benefits for the remaining four years.
If you are someone interested in securing this particular benefit then you should consider stepping up due financial literacy in a bid to ensure that you are selecting the most suitable plan for your family members. Listed below are a few factors that you should keep in view while choosing a policy.
Debt to Income Ratio
The entire idea behind the introduction of this cover was to replicate your earning in your absence so that your loved ones don’t have to suffer the economic hardships besides dealing with a sense of loss. Please consider your total earning plus your total volume of debts including your mortgage, and other loans.
This will help you determine the amount of premium that you’ll be able to shell out for the cover. The money that you insure for your family should be sufficient for them to pay off the loan installments with ease.
If you have worked hard to ensure a decent living for your family, you should make sure that the cover that you ensure for them is sufficient for them to meet their expenses without compromising on their lifestyle.
As your family’s breadwinner, you must have kept track of the budget allotted for the maintenance of a certain kind of lifestyle that your family members have adopted- for instance, on the kind of dresses they wear, places they visit, sources of entertainment they avail, etc. Make sure that you are keeping these factors in view while choosing family income benefit insurance coverage.
The Age of Your Children
It is one of the crucial factors governing your selection of a policy. Please keep in mind that the cover that you select provides protection to your child or children until he/she/they is/are grown up enough to fend for themselves.
If you have two kids aged 15 and 12, you should choose a plan that provides benefits until both your children are grown up enough to provide for themselves.
Government Money for People With Low Income
Unfortunately, more people than ever in this country are struggling with low income, unwanted layoffs and the bad credit that results from using credit cards to try to fill the gap between income and needs.
With bad credit, these Americans are having a hard time getting the loans they need to go to school, buy a home, or invest in new business. In order to keep the economy running and the American people fed, clothed and insured, the government has stepped up the availability of benefits, loans and federal assistance programs available to low income and unemployed people.
The federal government benefits website, benefits.gov, explains many of the eligibility requirements and rules you need to know about. You can take a simple quiz to determine your eligibility and what programs would most benefit you and your family.
You can also go into federal government offices in many major cities for assistance with applying to these programs. What most people don’t know is that you may qualify for a program like a federal home loan or children’s health insurance assistance even if you still have a job, savings or significant assets like a diamond ring.
Most federal assistance programs are in the form of loans, in which the government gives you money that you have to pay back at some point. FAFSA college loans and HUD home loans are in this category.
Others take the form of discounted or free goods and services, like federal health insurance, food stamps or job training programs. Only a few federal programs, such as unemployment insurance, actually hand out money to participants.
Here are just a few of the most popular and useful government assistance programs.
Children’s Health Insurance Program
Known as CHIP, this program provides free or discounted health insurance for children up to age 19. To be eligible, the family must make less than a certain income level per year, although some states have recently raised the maximum income to make affordable health insurance available to the middle class as well.
Coverage generally includes routine and emergency care such as check-ups, immunizations, hospital stays, dental care, and lab services. More than 7 million children participate in CHIP.
Supplemental Nutrition Assistance Program
The program formerly known as food stamps, SNAP provides access to healthy food for millions of low-income Americans. SNAP benefits are issued in the form of debit cards that can be swiped to buy groceries in thousands of grocery stores nationwide.
To qualify, applicants must meet certain criteria regarding income, assets, deductions, and disabilities. For higher-income families who still need nutrition assistance, WIC (Women, Infants, and Children) provides access to supplemental nutritious food at a much higher maximum income point.
Home Loan Assistance
First founded in 1934, FHA loans are designed to help lower-income Americans finance homes, especially first-time home buyers. The Federal Housing Administration insures home loans, encouraging banks to offer first-time buyers better mortgages despite the bad credit.
A first-time buyer with an FHA loan will often be required to provide a much smaller down payment, and minimal closing costs and fees.
Provided through the Department of Labor, the UI program has received a lot of political attention lately but remains an invaluable resource to Americans of all income levels who have been laid off.
UI provides benefits to eligible people who have lost their jobs through no fault of their own, such as the millions who have been laid off through this time of economic crisis. The level of support and the length of time of coverage will vary by state and industry.
The most well-known and controversial federal program, welfare provides temporary benefits for families in need. It is the least restricted of the federal aid programs, but as a result, is the most difficult to qualify for—reserving its funds for the neediest Americans.
While on welfare, recipients must actively prove that they are looking for a job and are not wasting their benefit funds. For example, a recipient could be expelled from the program for engaging in a loose diamond search or research into another luxury purchase.
No Income? The Government Wants to Help
Those on limited, low, or zero income might be eligible for additional Government support. Although you’ve probably already heard of some of the popular programs like Medicaid, there are loads of different schemes that aren’t as well known – and could be waiting to provide you additional help and support.
Medical insurance can be expensive, and many Americans are put in a position where they can’t afford it. Thankfully, millions of Americans are helped each year by Medicare, which provides health insurance and coverage on certain procedures for those who can’t afford their own private plan.
Read also: Are You Up To Your Neck In Medical Debt?
Those who have served with the US armed forces might be eligible for additional support in the form of Veteran Benefits. Provisions include additional healthcare, pensions, and training.
Farming and Agriculture Benefits
Those reliant on livestock or crops for their living might be eligible for Government agriculture support. Mainly focussed on helping farmers, the support includes crop and livestock insurance as well as other provisions such as farm loans.
Native American Assistance
Those of tribal or native American ancestry might be eligible for additional support from the Government. The help on offer includes student aid along with grants and help to find employment.
There are actually a number of different Government grants available to those in a wide range of sectors and industries. If your business is operating in a specific field, such as low energy or other social enterprises, you might find that you’re eligible for a government grant.
Earned Income Tax Credit
For those on moderate to low income, the Government previously legislated a way for you to get more of the money back that you’ve paid in taxes. Seen as a way of encouraging people to get out to work, many low-income earners are now finding that they qualify for additional money back from the Government.
Lifeline Cell Phone Assistance
If you’re a low-income earner – you might also be able to benefit from the Lifeline program which provides free cell phones and call services. The Lifeline program has been running for many years, originally set up as a way to help low earners get their own landline phone.
Although the service isn’t available in every state yet, that is set to change as it continues to grow. Many people have been previously unaware of the scheme, but are now finding that they too could qualify for a free cell phone and calls.
Those out of work or struggling to find a job might also be entitled to additional Government training and education. Seen as a way of improving the employment prospects of both youths and adults, employment training could be a great way to improve your skills and get a job.