Increase in demand for family income benefit

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Scottish Provident has reported a four-fold increase in sales of its critical illness plans on an income basis (also known as family income benefit).

Family income benefit pays out a regular income, rather than a lump sum from the time the claim is made. It can provide an income to help with modern day costs such as maintenance payments for children or education fees. It also avoids the difficulty of having to deal with a potentially large sum of money during an emotionally difficult period.

Scottish Provident claims that as the economic instability remains in the UK the security offered by this kind of product is becoming ever more popular as consumers seek products that are flexible and that suit their long term needs. It also comes at a cheaper price – Scottish Provident calculates that its family income benefit plan can save customers up to 59% in monthly premium charges.

Susan Barclay, head of marketing at Scottish Provident, said: “The four-fold increase shows that people are increasingly concerned about ensuring their family’s financial safety should their main income be cut short due to death or illness.

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