Family Income Benefit

• Provides a tax-free monthly income
• Helps long-term family budgeting
• Low-cost premiums
• Could pay out up to £5000 a month (this can be more or less depending on the provider)
• Term length up to 40 years

A different kind of life insurance is family income benefit, sometimes referred to as FIB or family income protection.

Instead of receiving a lump sum payment upon your death, as is the case with typical life insurance, your loved ones will instead get recurring monthly income payments.

The family income benefit payments will start as soon as your claim is approved and continue until your policy expires.

Tax-free payments might assist your loved ones in maintaining their standard of living by replacing your lost income.

Family Income Benefit in Belfast & Northern Ireland is well suited to new parents, or those with young families, who want an affordable way to provide for their loved ones should the worst happen.

Your unique situation and the financial obligations you want to take care of for your loved ones will determine how much family income benefit coverage you require.

Young families that want to safeguard ongoing family living expenses might consider the family income benefit. After your passing, it might be useful in restoring lost income and enabling your loved ones to maintain their existing standard of living.

The following factors should be considered when determining how much coverage you require:

What financial commitments do you have? – It’s a good idea to consider both your existing financial obligations and any expenses that are expected to arise in the future.

How long should your cover last? – To allow loved ones to continue paying payments and staying in the family home, it is good for your policy to reflect any mortgages or long-term rental agreements you may have. Additionally, you might want to time your family income benefit policy to coincide with your kids’ financial independence.

Family income benefit in Belfast & Northern Ireland’s premiums is calculated in the same manner as other forms of life insurance; based on your likelihood of making a claim.

During the application, you’ll be required to provide key information, which will allow insurers to assess your level of risk.

This information includes details about yourself as well as details about your policy, including:

• Age
• Smoking status
• Medical history
• Lifestyle
• The monthly income you’d like paid out
• Policy term

When taking out family income benefit in Belfast & Northern Ireland, you have the option of guaranteed premiums or reviewable premiums.

Guaranteed premiums will remain the same throughout the lifetime of the policy, meaning the price you pay doesn’t change.

Reviewable premiums can often be cheaper initially, but your insurer has the right to increase them throughout the term of your policy (this can be down to a range of factors such as your age or change in risk).