Family Income Benefit

Family Income Benefit Life Insurance is designed to provide your family with a monthly benefit should the worst happen. This can help with mortgage or rent, replace lost income and help with the costs of bringing up children

For peace of mind, many people choose a type of family life insurance called family income benefit

Most families, couples or co-habitants rely on at least one regular monthly salary to cover regular household spending. How would your household replace this if one partner died?

When FIB isn’t suitable

This is to meet the continuing cost of living.

This type of policy shouldn’t be used to cover a mortgage or other debts – insurance that provides a lump sum is usually more appropriate for that.

The regular payout from a FIB policy lasts only as long as the policy runs.

How family income benefit can help your family

Once the term ends, cover and any payments cease. So if you take out a 20-year policy and die five years into it, your family will receive regular income for the remaining 15 years. If you were to die 16 years into the policy, it will pay out for the remaining four years. This is different from other term life insurance policies, which give a lump sum if you die within the term. One of the most common is level term life insurance, where a lump sum is paid on death. This amount is the same whether death comes at the beginning or end of the policy. There are also some life insurance policies that run indefinitely, called whole-of-life policies, so that a guaranteed sum is paid when death occurs.