Family Income Benefit
Family Income Benefit pays out a regular monthly income rather than a cash lump sum for the rest of the duration of the term of the policy.
You can take FIB to cover death or if the insured contracts of a Critical or Serious Illness. If you make a successful claim for say Cancer or Total and Permanent Disability (providing you are covered for these things as policies do vary), you will receive a monthly income until the end of the term of the policy. If you take the policy out to cover £500 per month over 25 years and you make a successful claim in year 5 then you will receive £500 per month for the 20 years that are left on your policy.
Again if you died in year 5 of the policy then your family would receive the £500 for 20 years.
This is sometimes a cheaper alternative to having a standard life or Critical illness policy in the fact the insurer may pay you less in benefits under the policy so rather than paying out a cash lump sum they will pay you a monthly income for the rest of the term of the policy.
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