Compared to income protection and decreasing term assurance, how does family income benefit typically compare in cost?

Family income benefit is generally considered to be usually cheaper than both income protection and decreasing term assurance for several reasons related to its structure and payout nature.

Family income benefit pays out a regular income rather than a lump sum in the event of the policyholder's death. This can make it a more affordable option for families looking to secure ongoing financial support while potentially covering day-to-day expenses. Typically, the likelihood of needing to provide a continuous income rather than a larger one-time payment can lead to lower overall premiums for this type of policy.

Moreover, family income benefit is usually designed with lower sums assured since it focuses on providing a monthly income that replaces lost earnings rather than covering a specific financial liability. This can further contribute to its lower cost when compared to policies like income protection, which aims to replace an individual’s earnings, or decreasing term assurance, which provides a decreasing payout over a specified term.

These aspects of family income benefit are key in making it a cost-effective choice, especially for individuals or families looking for reliable monthly financial support.