Family Income Benefit Insurance (FIB) policies are not as commonly purchased as Level Term products. However, they are still a great way of protecting your family in the event of your death.
Family Income Benefit Insurance works in a slightly different way to normal life insurance policies. Instead of paying out a one off lump sum on your death, the policy will pay your family an annual tax free income from the time you pass away until the policy expires. The family income benefit policy is designed to replace your income and ensure your family is well supported when you are not around. Premiums can be paid by direct debit on an annual or monthly basis.
To give an example of how Family Income Benefit Insurance compares with level term policies, we have mapped out the costs for both policies based on a 40-year-old male non-smoker.
|Policy Type||Premium||Term||Maximum Pay-out Possible|
|Family Income Benefit||£20.00||20||£425,520.00|
As displayed above you can see that the Family income Benefit policy will offer you much more cover for the price you pay. The reason this type of policy is cheaper is that as the years go by the maximum pay-out will continue to reduce.
As with other Term Assurance policies, you can add Critical Illness Insurance cover onto the Family Income Benefit. So if you were to be diagnosed with a serious condition listed by the providers you would receive the tax free pay-outs to help cover the costs of medical bills and loss of earnings.
Speak to one of our experts for more information on family income benefit life insurance.
To get a better understanding of our process and to obtain a Family Income Benefit quote, simply Get a Quote, or give us a call.
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