Invest & Protect LTD
45 Market Street
Wirral
Cheshire
CH47 2BQ
Tel 0845 22 55 191
Fax 0151 632 2117
email:
info@life-ins.co.uk
Office Hours
9am - 5pm
|
|
Family Income Benefit (FIB)
Life cover is taken out for many reasons but the two main ones are to
protect a mortgage and to protect your family the latter is what Family
Income Benefit or Family Income Benefit
is for.
When someone takes out life cover to protect their family they do it on the
basis that should they die they want their family to have enough money to
continue to live in the style they are accustomed to. In the past people
have taken out lump sums that would eventually be invested to produce an
income that the family would live off.
Taking such things as, inflation into account and the lack of investment
expertise that an average family would have access to, presents a
potentially dangerous situation for the family and as such they might not
have the right money at the right time, which is the only point to having
the insurance in the first place.
With this in mind Family Income Benefit
s were born. They essentially provide an
income on death for the term of the plan and as an additional benefit you
can add indexation to the plan. This means that if the life assured is
earning say £20,000pa and they want to protect that amount for the next 18
years till say there youngest child had left full time education they could
have a Family Income Benefit
for £20,000 include indexation benefit. The result
would be if they die during the term then £20,000 or the equivalent to that
amount would be paid out to the beneficiaries and this would go up with
inflation each year until the end of the plan.
The upshot of this is the family get exactly what they need when they need
it without any of the hassle of investing money and hoping for good returns.
Again you can include additional benefits such as Critical illness benefit
and waiver of premium benefit to the plan as required.
|
