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Telling FIBs – the most important Life Insurance product that consumers should know about
Family Income Benefit (FIB) may sound like a government benefit but it is a little-known Life Insurance product that can cost less and pay out more than traditional policies.
For most people Life Insurance means just one thing – a lump sum that pays out on death. However, FIB policies offer the beneficiary a payout in the form of a tax free income every year until the end of the policy. On average FIB is 35% cheaper than a normal policy and can potentially pay out more. It also avoids the tax and charges normal with investing a lump sum.
It is an excellent choice in these cash-strapped times and also means that the beneficiary cannot blow the money in one go – crucial if someone is leaving their payout to ensure their children can be properly cared for.
The table below shows how much Life Cover you can buy for an £8 a month premium compared to FIB over 20 years:
Client |
Life Cover |
FIB annual benefit |
FIB total benefit over term |
Male age 30 |
£150,000 Royal Liver |
£13,767 LV= |
£275,340 |
Female age 30 |
£221,631 Royal Liver |
£22,032 Royal Liver |
£440,640 |
Male age 40 |
£65,948 AXA |
£7,121 LV= |
£142,420 |
Female age 40 |
£85,140 Aegon |
£9,588 Royal Liver |
£191,760 |
Source: www.lifesearch.co.uk
LifeSearch Senior Policy Adviser, Matt Morris, said: "Few consumers know about this product and they are missing out on a product which ensures dependents are cared for and offers very good value for money too.
"Family Income Benefit can be linked to school fees or the cost of home help for the surviving partner if they have children that need to be cared for. The money continues to pay out until the end of the policy, which is normally when the children reach adulthood. It is a cheap and easy way to protect dependents, it's just a shame more people don’t know about it."
Note to Editors: We have a FIB case study prepared if needed. Enquiries
Notes to editors
- About LifeSearch
- LifeSearch can source case studies where required and can provide tables of typical premiums.
- Consumers can now buy Protection Insurance products online with regulated advice in a quick and simple format for the first time ever without having to deal with an adviser at www.getliferight.co.uk.
- Contact LifeSearch
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