Nobody likes to think about the worst happening to them or their family.
At a time of loss, the last thing a family needs is the upset and stress of any financial worries and it is our job to explain the importance and benefits of protection cover and how it could add a little peace of mind to you and your family.
There are many different options available and today we would like to share a little more about what family income benefit is and how it may be able to help you.
What is Family Income Benefit?
Family Income Benefit (FIB) is a particular type of life insurance policy which will provide a regular monthly payment to your family in the event of death rather than a one-off lump sum payment.
When should I take out FIB?
This protection is often particularly suitable to support families with children and therefore if you already have children or are deciding to start a family then this cover should be considered.
The loss of a parent is devastating and can present financial challenges such as loss of household income and unexpected childcare costs. Many people don’t realise that even with enough life cover to pay off a mortgage, the people they leave behind often still struggle to meet all the remaining household bills and costs.
But FIB isn’t just for families with children – it can work in any situation where you’d like to leave an income behind for someone you care about.
FIB will provide peace of mind cover, making it much easier to manage expenditure needs and household bills without having the need to budget monthly.
How does the cover work?
Family income benefit insurance will pay a monthly sum for a fixed period as agreed when you take out the cover, this is usually until your child or children reach a certain age.
The cover can also be taken out as what’s known as ‘increasing term’ which means that the monthly payment received would rise each year with inflation to help cover rising costs.
How much does it cost?
As with any insurance cover the cost is based on a number of different things but FIB is seen as the most budget friendly insurance for individuals and families.
When considering the right cover for you we would discuss what level of income would support your loved ones, how long they would need the payments for, whether you would like this set or to rise with inflation and whether you would like single or a joint policy for a two-parent family.
Let’s look at a real-life example to show you what this could look like and an example cost:
• A 35 year old individual who takes out FIB which will pay out for 15 years after death at £900 per calendar month (indexed linked so the payments rise with inflation) would cost around £18 per month.
Your personal cost would of course be based on your personal needs and premiums are based on health and lifestyle questions.
How can I find out more about FIB?
As with any protection cover you should take advice about the best way to protect yourself and your family.
We are here to give you guidance and information on what options there are available and the best cover for your circumstances.
We would love to help protect you and your family!