Life insurance holders would rather leave monthly income
Published On 31 January 2007
Many life insurance holders may prefer to leave their loved ones a monthly income rather than a lump sum, according to Moneysupermarket.com.The price comparison website found that 24 per cent of customers would prefer to leave their family a regular replacement income.
The majority, 59 per cent, said they would leave a lump sum should they die, but nearly a fifth (17 per cent) were unsure.
Moneysupermarket.com is saying that since only two per cent of the population take up a monthly income policy, people are being kept in the dark about its benefits.
Emma Walker, protection manager at Moneysupermarket, said: "People may automatically opt for a lump sum to be paid out on thinking their loved ones will receive more this way compared with a regular monthly or annual income."
She added: "But they should bear in mind that premiums are higher for lump-sum life insurance, and potentially you could receive more income from a family income benefit policy."
Loved ones receiving monthly income rather than life insurance also reap the benefit of not paying tax on money, the price comparison specialists said.
