Zurich Futura Family Income Benefit

Futura is a flexible, whole of life insurance policy, primarily designed to pay a cash sum when you die. You can also choose to add a number of optional benefits to your policy at an additional cost.

Critical Illness Cover and the Family Income Benefit are most important riders for families with young children or for couples starting a family.

The advantage of a family income benefit is better understood with an example;

Ramesh and Priya are a young couple, 30 and 29 years respectively, residing in UAE for 5 years, with their daughter Smitha, 2 years old.

Ramesh is in the process of deciding a Life Insurance and he approached me for the same. After going through the financial planning process, we arrived at the following figures for his life whole of Life Futura;

Life Cover

$450,000

Critical Illness Cover

$ 300,000

Hospitalization Benefit

$ 1000 per week

Family Income Benefit for 20 Years

$ 1000 Per month

Calculated Premium for 15 years

$ 335 Per month

Ramesh wanted to understand more about the family income benefit and I obliged with the following;

The Family Income benefit provides a regular income for insured’s family in the event of death of the insured, in addition to the life cover.

While the life cover could be used for paying off a mortgage or any other liability, or may be kept aside for the education or marriage costs of Smitha, the family income benefit provides a regular income, till Smitha is 22 years old.

In this case, Ramesh’s family will have to go back to India, as Smitha is a home maker and they will have a monthly income of $ 1,000 or INR 64,000, which will comfortably support their living and schooling expenses in India.

Alternatively Ramesh could increase his life cover by an additional $ 200,000 to provide his family a regular income from an investment in a term deposit fetching 6.00 % net of tax returns. This option without Family income benefit will cost him $ 414 per month for 15 years, increasing his premium by $ 79.

Family Income

Ramesh also considered another option, where the life cover was at $ 450,000, along with $ 300,000 Critical Illness Cover and $1,000 hospitalization cover to understand what would the impact of the family income benefit on the monthly premium; and it worked out to be $ 326, only $9 less than the option with family income benefit.

The numbers made sense to Ramesh and he availed his Futura, with the family income benefit.

Technical Facts

Minimum Age at Entry:                 17 Years

Maximum Age at Entry  :               74 Years

Minimum benefit Term:                10 Years

Maximum Benefit Term:              40 years

For Joint life policies, family Income benefit can be availed on one life or on both lives

Provides a regular (monthly, quarterly, half yearly or annual) income for the insured’s family for a period defined at the outset of the policy.

To help you select the right Insurance plan with the most beneficial riders, call me on +97155-7701792 or click here to arrange a meeting.

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