Family Income Benefit Insurance
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FIB is a type of term life insurance that pays out a regular monthly income to your family if you die or are diagnosed with a terminal illness.
The amount of the monthly income is usually set when you take out the policy, and it will continue to be paid out until the end of the policy term, even if you die before the end of the term.
- FIB can be a good option for families with young children, as it can help to ensure that their financial needs are met if the main breadwinner dies or is diagnosed with a terminal illness.
- FIB is generally considered to be more affordable than other types of life insurance, as the risk to the insurance provider reduces each year.
Here are some of the key features of FIB:
- Monthly income payments: FIB pays out a regular monthly income to your family if you die or are diagnosed with a terminal illness.
- Tax-free payments: The monthly income payments from FIB are tax-free, so your family will receive the full amount.
- Flexible premiums: You can choose to pay your premiums monthly or annually.
- Guaranteed premiums: With some FIB policies, your premiums are guaranteed not to increase, even if your age or health changes.
- Conversion to a lump sum: If your circumstances change, you may be able to convert your FIB policy to a lump sum payment.
Here are some of the benefits of FIB:
- Provides financial security for your family: If you die or are diagnosed with a terminal illness, FIB can help to ensure that your family's financial needs are met.
- Can help to maintain your family's lifestyle: The monthly income payments from FIB can be used to cover everyday living expenses, such as mortgage payments, childcare costs, and utility bills.
- Can help to pay for education: If you have young children, FIB can help to pay for their education if you die or are diagnosed with a terminal illness.
- Can be more affordable than other types of life insurance: FIB is generally considered to be more affordable than other types of life insurance, as the risk to the insurance provider reduces each year.
If you are considering FIB, it is important to compare different policies and providers to find the best one for your needs. You should also talk to an advisor to get their advice.
HOW DOES IT WORK?
Family income benefit is a type of insurance policy that gives your family or dependents a regular income in the unfortunate event of your death.
It’s different from a life insurance policy, which pays out a lump sum. Instead, family income benefit pays out a regular income, often monthly, for a certain period of time.
- Designed to support your family with everyday costs, the monthly income is one way you can ensure their continuing financial security.
- Payments last for anything from 5 to 30 years.
- This payment period is something you choose when take out the policy.
You also choose how much the family income pays out each month along with the length of time it pays.
It’s worth knowing that family income benefit premiums are often less than you might pay for life insurance. That’s because payments are delivered over time.
This type of cover can be a good option for your dependents or family if you want to give them ongoing financial support.
- By helping maintain their standard of living after you’re gone, it’s an option for those who wish to do just that.
- To find the right family income benefit policy for your needs, it’s important to compare policies from different insurers.
- You may also want to speak with one of our advisors who can talk through your options with you.
HOW MUCH COVERAGE DO I NEED?
This type of insurance is for individuals who have dependents and/or family who count on their income for financial support.
Whether you’re a spouse or partner with children and any other family, you might consider thinking about this type of insurance.
Thinking about the amount you might need means looking at your individual situation, including things like:
- your income,
- expenses,
- any other needs your dependents might have.
Calculating how much you need, you can include your monthly housing costs, groceries, transport, bills, and other as well as any outstanding debts or loans.
Don’t forget to include any expenses that would occur after your death, like funeral expenses.
With a total amount in mind, choose the length of the payout period.
If you want your family to have £2,000 per month for 10 years, your total coverage amount is around £240,000.
- Make sure you take your total amount and length of payout period into account when you’re taking out a policy.
- And don’t forget to add in any additional features or benefits your family might need.
Selecting the right policy for you means it’s important to compare different policies from different insurers.
Our advisors can help you talk through any policy features to help you get the right policy.
HOW DOES FIB DIFFER FROM OTHER TYPES OF LIFE INSURANCE?
In summary, here are the main differences between various types of life insurance.
Family Income Benefit Insurance:
- Pays out a regular income to your beneficiaries if you pass away during the policy term.
- Typically provides coverage for a fixed term, such as 10, 15 or 20 years.
- Can be a more affordable option compared to other types of life insurance.
Term Life Insurance:
- Pays out a lump sum to your beneficiaries if you pass away during the policy term.
- Typically provides coverage for a fixed term, such as 10, 15 or 20 years.
- Premiums remain the same throughout the policy term.
So, there we have it.
Family income benefit cover gives a regular income to your beneficiaries if you pass away during the policy term. Whereas term life insurance provides a lump sum payment.
And family income benefit protection is often more affordable in that it might have lower amounts of cover as compared to term life insurance.
How we can help you
Understanding your needs:
- Our advisor will first need to understand your financial situation and specific needs for FIB.
- This includes factors such as the amount of income your family will need, the length of the policy term, and your budget.
Helping you compare different policies:
- Our advisor will then compare different FIB policies from different providers to find the right deal for you.
- This includes factors such as the premiums, the benefits, and the terms and conditions of the policies.
Guiding you through the process:
- Your advisor will then advise you on the most suitable course of action, taking into account your individual needs and circumstances.
- This may include recommending a specific policy or helping you to choose the right policy for your needs.
Providing ongoing support:
- Your advisor will also provide ongoing support
- Answering any questions you may have
- And helping you to make any changes to your policy as your needs change.
Our most frequently asked questions
Here are some of our most frequently asked questions. If you have any questions of your own, get in touch.
What are the benefits of FIB insurance?
The main benefit of FIB insurance is that it can provide financial security for your family if you die or are diagnosed with a terminal illness. The monthly income payments from FIB can be used to cover everyday living expenses, such as mortgage payments, childcare costs, and utility bills. FIB can also help to pay for education, medical expenses, and other financial needs.
What are the drawbacks of FIB insurance?
One drawback of FIB insurance is that it can be expensive, especially if you want a high level of monthly income. Another drawback is that FIB policies usually have a shorter policy term than other types of life insurance. This means that you will need to renew your policy more often, which can increase the cost of the insurance.
Who should consider FIB insurance?
FIB insurance is a good option for people who want to provide financial security for their family if they die or are diagnosed with a terminal illness. It is also a good option for people who have young children or other dependents.
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