A Family Income Benefit, (FIB) Term Assurance gives financial protection for dependants by providing a regular tax free income in the event of death. The regular income benefit can replace the income lost and to help maintain any financial dependents.
If circumstances have changed since the policy started, often there is a facility to commute the regular income to a lump sum at a reduced rate to take into consideration the immediate payment of all benefits.
The amount of benefit reduces during the term of the policy and reduces to zero by the expiry date.
Summary of benefits:
- The benefits under this policy are guaranteed and do not depend on investment performance.
- Your dependents will have regular tax free income in the event of your death.
- Secure help in bringing up children and maintaining the family home.
- Allow a surviving parent to devote time and attention to the needs of children.
- The policy can be written under trust for ease of administration on death or part of an IHT planning exercise to reduce the value of your estate(s).
- Can be written as a single or joint policy to meet your objectives.
- The level of cover reduces over the term of the policy.
- The effects of inflation could reduce the purchasing power of your benefits.
- If you stop paying the contribution the life cover will cease.
- The plan has no cash value either during or at the end of the term.