Family Income Benefit
What is Family Income Benefit?
Family Income Benefit (FIB), also known as Guardianship Insurance, is a life insurance policy for people who want to ensure that their dependents have a steady stream of income to support them in the event of your death as their parent.
Instead of a lump sum payment, it is paid monthly to help cover ongoing living expenses, mortgage payments, education costs, and other financial obligations, providing peace of mind and financial security to the insured person’s loved ones. If you have guardians set up in your will this policy can provide a steady income for those who become the legal guardians of your children—enabling them to support them financially.
What Types of Family Income Benefit Insurance are there?
Family Income Benefit (FIB) policies typically offer several options for the income payments to beneficiaries. Here are some common types of Family Income Benefit policies:
- Fixed Term Coverage: The policy can vary from several years to decades, typically it is till the youngest dependent is in their early twenties but not limited to adults with children.
- Level or Indexed Payments: Policies can offer level income payments or indexed income payments. level payments, remain constant throughout the policy term, indexed payments, take into account the inflation.
- Joint or Single-Life Policies: These can be set up as joint-life policies or single-life policies.
Do I Need Family Income Benefit?
Family Income Benefit will pay out upon your death or if you are diagnosed with a terminal illness.
It is designed to help those with but is not limited to as life insurance is for all.
- Dependents to financially care for such as school-age or vulnerable children.
- A partner or family that relies on your income
- Families who are living in a house with a mortgage that you are responsible for or pay half towards – if you were to die, the payment could go towards paying the mortgage or paying for them to relocate
- Funeral expenses that will need to be paid upon your death.
How Much is Family Income Benefit?
Like most insurances, Life Insurance premiums will depend on several factors including:
- Type of Policy
- Coverage Amount
- Term Length (for Term Life Insurance
- Age
- Health Status
- Smoking Status
To get an accurate idea of how much Family Income Benefit will cost you, it’s best to request quotes from insurance providers. Insurers will assess the individual’s age, health, lifestyle, coverage needs, and other relevant factors to determine the premium amount. Additionally, working with an insurance broker or financial advisor can provide valuable guidance in selecting the right life insurance policy based on individual needs and budget considerations.
What Other Insurance Options Are There?
If Family Income Benefit Insurance isn’t for you, or you’d like to see what other products we offer, take a look at our other insurance options, including Critical Illness Insurance and Income Protection
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