Have you the correct protection assurances in place for your family?
Have you the correct protection assurances in place for your family?
Most families, couples or co–habitants rely on at least one regular monthly salary to cover regular household outgoings. At Financial Foresight we think it is prudent to think about how you would replace this income if one partner died?
At Financial Foresight, we understand that everyone’s circumstances are different, and your income and outgoings are different. We feel that you can’t put a price on Life Insurance, especially when it comes to protecting the needs of your family. In the event of a death of a loved, the last thing you will want to worry about is the outstanding bills and outgoings each month.
1. What is Family Income Benefit?
Family Income Benefit (FIB) is one of a range of policy types known as term life insurance. A FIB policy runs for a set time known as the term. If you or your partner dies within this period, it pays out a regular tax–free income until the term ends.
2. How does this work?
With a regular pay–out from the “in–force” FIB policy, this will only last as long as the policy runs. Once the term ends, cover and any payments cease.
For Example: if you take out a twenty–year policy and die five years into it, your family will receive regular income for the remaining fifteen years. If you were to die sixteen years into the policy, it will only pay out for the remaining four years.
This is different from other term life insurance policies, which give a lump sum if you die within the term. One of the most common is level term life insurance, where a lump sum is paid on death. This amount is the same whether death comes at the beginning or end of the policy.
3. Why you might want it?
As outlined above, in the event of a death of a loved one, your world stops, but household bills and regular outgoings will always need to be paid. With a sudden loss of income, this can make it tough to manage these expenses. This is where FIB can help to provide extra support. If you have a young family, you might want cover to run until your children are grown up, using the income for everyday expenses or specific items such as school or university fees.
With a FIB policy this can all be made possible, so why not speak to one of our expert advisers today, by giving us a call on 028 9332 2822. We’d love to help you secure your future!
Source:
https://www.royallondon.com/life-insurance/articles/family-income-benefit/