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Family Income Benefit policies, (FIB policies) are a term policy in which the sum insured decreases over time, hence making it cheap. Decent cover for a tenner.
Family Income Benefit is designed to provide income for the family until a certain time, normally after the children leave home. This means the surviving parent does not have to scrape by on benefit, or have to work while the children are still dependent.
Example. A man buys a £10,000pa 25 year FIB policy and dies. His family get £10,000pa for 25 years, (i.e. £250,000 ). ( Note, purists might also note that the insurance company might offer a lump sum instead. True but not relevant ).
If he lived 15 years and died only £100,000 would be paid out. Hence the low cost.
Family Income Benefit is so cheap that it is a MUST BUY for anyone with young children, or even those planning a family.
Note, to cover both parents compare a joint policy that only pays once with two single policies. You will find that double cover is much less than double price.
Myself and my wife both have single live FIB policies. At the time of writing we do not have children, but hope to.