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About the Author

Malcolm Davidson

Managing Director of UK Moneyman Ltd.

Malcolm Davidson

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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Understanding Family Income Benefit Insurance

Family Income Benefit (FIB) Insurance is a lesser-known yet invaluable form of life insurance that provides financial support to your loved ones in the event of your death.

Unlike traditional life insurance policies that pay out a lump sum, Family Income Benefit Insurance offers a regular, tax-free income to your family over a predetermined period.

This can help them maintain their standard of living and cover essential expenses such as mortgage payments, bills, and education costs.

How Does Family Income Benefit Insurance Work?

When you take out a Family Income Benefit policy, you choose the amount of coverage you need and the length of time you want the payments to continue. In the event of your death during the policy term, your beneficiaries will receive a regular income stream rather than a lump sum payout. The payments typically continue until the end of the policy term, which you select when you first purchase the insurance.

For example, if you choose a 20-year policy with a benefit of £2,000 per month, your family will receive £2,000 every month for 20 years if you pass away during this period. This can provide much-needed financial stability and peace of mind during a difficult time.

Why Choose Family Income Benefit?

  1. Steady Income: FIB provides a steady stream of income to your family, helping them meet their ongoing financial obligations without the stress of managing a lump sum payout.
  2. Affordability: Family Income Benefit policies are often more affordable than traditional life insurance policies because they offer a predetermined income rather than a lump sum payout.
  3. Financial Security: By ensuring your loved ones receive regular income, FIB helps maintain their financial security and standard of living, even after you’re no longer there to provide for them.

Family Income Benefit Insurance FAQs

Who can benefit from Family Income Benefit?

Family Income Benefit is suitable for anyone who wants to ensure their family’s financial security in the event of their death.

It’s particularly useful for people who want to replace their income and support their family’s financial needs over the long term.

How is Family Income Benefit different from traditional life insurance?

Unlike traditional life insurance, which pays out a lump sum upon death, Family Income Benefit Insurance provides a regular income to beneficiaries over a specified period.

This can be advantageous for families who prefer the stability of regular payments rather than managing a lump sum.

How much Family Income Benefit do I need?

The amount of Family Income Benefit Insurance you need depends on your family’s financial requirements, including living expenses, mortgage payments, education costs, and other obligations. A financial advisor or mortgage broker can help you determine the appropriate level of cover based on your individual circumstances

In conclusion, Family Income Benefit Insurance offers a practical solution for protecting your loved ones financially in the event of your death. By providing a regular income stream, it ensures that your family can maintain their standard of living and meet their ongoing expenses without added financial strain.

If you’re considering life insurance, it’s worth exploring Family Income Benefit as an option to safeguard your family’s future.



About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm Davidson

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

Learn More

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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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