More than 30,000 needy families with young children will be able to benefit from a free insurance scheme.

NTUC Income's Income Family Micro-Insurance Scheme (IFMIS) provides families with a $5,000 payout when their main income earner dies or becomes totally and permanently disabled.

In a statement, NTUC said that as of Wednesday it will extend IFMIS to all primary school students receiving financial assistance from the Ministry of Education.

Recipients of the scheme, which can be renewed each year, do not have to pay any premiums.