Family Income Benefit (FIB) is a type of life insurance policy that provides regular, tax-free monthly payments to your dependents if you pass away during the policy term. Unlike a standard life insurance policy that pays out a lump sum, FIB offers a steady income for a set period, which can be helpful for covering ongoing expenses like household bills, childcare, and education costs.
Key features of Family Income Benefit
Fixed Term
You choose how long you want the policy to last, typically aligning with a significant life event, such as your children becoming financially independent.
Regular Payouts
If you die during the policy term, your beneficiaries receive monthly payments until the end of the term.
Affordability
Often, FIB premiums can be more affordable than other life insurance policies because it pays out in instalments rather than a lump sum.
Flexibility
You can tailor the policy to match your family’s needs, including adjusting the payout amount and term length.
It’s particularly useful for families who rely on a steady income and want to ensure financial stability in the event of the primary earner’s death.