The Importance of Family Income Benefit Insurance
The Importance of Family Income Benefit Insurance
When it comes to protecting your family’s financial security, it’s important to consider all of your options. One type of insurance that is often overlooked is family income benefit insurance. In the event of a claim this provides a steady stream of income to your family in the event of your unexpected death or disability. In this blog post, we will explore the importance of family income benefit insurance and how it can help safeguard your family’s financial future.
What is Family Income Benefit Insurance?
Family income benefit insurance is a type of insurance that pays out a monthly income to your family in the event of your death or diagnosis critical illness. This income is intended to help your family cover expenses such as mortgage payments, bills, and other everyday living costs generally supporting their lifestyle. The amount of income that is paid out is based on the policy you choose and can be tailored to fit your specific needs which our advisers can discuss with you.
Why is Family Income Benefit Insurance Important?
There are several reasons why family income benefit insurance is important. First and foremost, it provides a financial safety net for your family in the event of your unexpected death or illness. This can help alleviate some of the financial stress and burden that your family may face during a difficult time.
Additionally, family income benefit insurance can help your family maintain their current lifestyle. If you are the primary breadwinner in your household, your family may rely on your income to cover their daily expenses. In the event of your death or disability, the income provided by Family Income Benefit insurance can help your family continue to pay bills and meet their financial obligations.
Finally, it can be used if you pay maintenance to an ex-partner towards the lifestyle of your children. By having a Family income benefit policy you can ensure that your maintenance payments continue even in the event of your death and so maintaining their lifestyle.
How Does Family Income Benefit Insurance Differ From Other Types of Insurance?
One key difference between family income benefit insurance and other types of insurance is the way the benefits are paid out. With traditional life insurance, the payout is a lump sum that is paid out to your beneficiaries when you pass away. On the other hand, Family Income Benefit insurance pays out a steady stream of income to your family on a monthly basis. This can be especially beneficial for families who need a consistent source of income to cover their expenses.
Another difference is that Family Income Benefit insurance can in some instances be more cost effective then the equivalent amount of cover on a normal Life Assurance policy where the policy pays out a lump sum in the event of a claim. This makes it a good option where your budget is not high enough to cover the lump sum amount you feel your family might need in the event of a claim.
In conclusion, family income benefit insurance is a valuable tool for protecting your family’s financial security in the event of your unexpected death or critical illness. It provides a steady stream of income to help your family cover their expenses and maintain their current lifestyle. If you are concerned about your family’s financial future, consider adding FIB insurance to your insurance portfolio.
If you would like some advice on a Family Income Benefit policy for you and your family you can contact us on 01284 729250 or advice@larkbridge.co.uk. Alternatively, you can book a meeting with one of our advisers using the link in the header of this website.
Published on 11th December 2023
The information contained within was correct at the time of publication but is subject to change.