Homeowners Friendly Society launches new life insurance policy

Homeowners Friendly Society is set to offer Better Start Family Income Life Cover designed to help parents protect their family from financial hardship.

The cover will ensure families a tax-free monthly income in the event of a parent's death, the MoneyMarketing website reports.

Following a claim, the cover pays out in monthly instalments for the remainder of the 20-year policy term rather than one lump sum.

Premiums start at £6.16 per month and depend on the level of cover and personal circumstances. A female non-smoker aged 29 with a 20-year policy term and £15,000 of cover per year would pay £9.78 monthly premium.

The minimum sum assured is £10,000, rising to £23,000 for the 20 year term. Terminal illness cover is automatically included in the policy.

Homeowner chief executive, Andrew Haigh, said: "Although many parents do not want to face up to the possibility of dying before their children are financially independent, it actually can happen to any of us.

"Monthly payments spanning a policy term of up to 20 years ensures there will be a guaranteed income which can help provide for the children."