Family Income Benefit
Family Income Benefit (FIB) is a life insurance policy designed to provide your family with a regular, tax-free monthly income if you pass away during the policy term. Unlike traditional life insurance that pays out a lump sum, FIB offers ongoing financial support, which can be particularly beneficial for families with young children or dependents.
How Income Protection Insurance Works
1
Payout Structure
If you die during the policy term, your beneficiaries receive a monthly income for the remainder of the term. For instance, if you have a 20-year policy and pass away after 5 years, your family would receive monthly payments for the remaining 15 years.
2
Policy Term
Typically chosen to cover the period until your children become financially independent or until significant debts, like a mortgage, are paid off.
3
Tax-Free Payments
The income your family receives is generally not subject to income tax, providing them with the full benefit.
When You Might Need Income Protection Insurance
Primary Income Earners
Children & Financial reqirements
Regular Financial Support
Key Facts of FIB
1
No Payout If You Survive the Term
If you outlive the policy, no benefit is paid, and premiums are not refunded.
2
Not a Lump Sum
If your family requires a large sum to pay off debts or cover significant expenses, a traditional life insurance policy might be more appropriate.
3
Joint Policies
Typically pay out only once, after the first death, leaving the surviving partner without coverage unless they take out a new policy.