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Family Income Benefit

You’ve probably set up life insurance for many of your clients to cover those larger financial liabilities like a mortgage, and that lump sum payment may be vital to keep a roof over their heads. But a family will still struggle to meet day-to-day living costs even if the mortgage has been paid off.

Family Income Benefit (FIB) is an affordable way to plug this protection gap for your clients.

It’s designed to pay out a tax-free monthly income until the end of the term on the death of the life assured or their diagnosis with a terminal illness. It's available as part of the LV= Flexible Protection Plan, either on its own, or combined with other policies. The LV= Flexible Protection Plan is our menu plan, which allows you to mix and match different types of insurance for your clients.

How to position Family Income Benefit

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Day to day bills

For example, childcare or utility bills that will still be payable if a main earner or homemaker dies. Younger families are especially vulnerable and a monthly income from an FIB policy could ease the financial pressure they would face under these circumstances.

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FIB for renters

Today 1 in 5 people are renting the property they live in, and for many this is a longer-term option. However, renters still need the right cover and support in place if a partner or spouse were to die, otherwise they may find they can’t pay their rent or day-to-day bills.

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Divorce maintenance payments

If one of the divorced partners dies, maintenance payments could be at risk. A FIB monthly payment would help to ensure that children are brought up securely and without financial worries.

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A child's future prospects

If the worst happens in a single parent family, the future prospects for a child could be greatly improved if a monthly income is payable to a guardian to support the child as they grow.

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Education fees

Parents always want the best for their children, and the monthly income payment could make all the difference in maintaining a child’s education on the death of a spouse.

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The cost of care

If a spouse has become a full-time carer for their loved one, and is suddenly no longer around, the monthly income could continue to fund home care or other costs for the dependant.

Main features

  1. Inflation-linked cover is available, maintaining the buying value of the income in the longer term
  2. Pays a convenient monthly income which can be converted at any time during a claim to a reduced lump sum
  3. Premiums are guaranteed throughout the term – no reviews, and the minimum premium is £5 per month
  4. Terminal illness benefit is included as standard throughout the term
  5. Guaranteed Increase Option is available for a variety of specified life events
  6. Includes ‘Pay My Mortgage’ facility which enables the beneficiaries of the policy, depending on their individual circumstances at the time of claiming, to have all or some of their monthly income paid directly to their lender to cover their regular mortgage payment
  7. New protection policyholders agree to become LV= members and immediately qualify for valuable Member Benefits including a bereavement support line. LV= Doctor Services is also provided as standard, at no additional cost, 24 hours a day.

Important information

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  1. If your client chooses level cover, it won't keep up with inflation and could buy less in the future.
  2. There is no cash in value at any time.
  3. If your client stops paying their premiums, cover may cease.
  4. We won’t pay a claim if death is the result of the life insured intentionally taking their own life within the first 12 months of the policy.

Quote and apply

Our fast and flexible quote and apply technology, Fastway, helps you put your clients on risk quicker:

  • save quotes and go back to them anytime
  • see instant decisions and partially underwritten quotes
  • view all your personal applications in one simple dashboard
  • use directly with the portal of your choice
  • fill in the sections in the order that suits you and your client
  • access our online Pre-Underwriting Tool and get an indicative underwriting decision 24/7
  • we offer an easy to use online trusts tool to help you make sure the valuable protection you’ve set up for your clients pays out quickly and to the right people.

Product profile

A summary of the relevant product information about Family Income Benefit and Waiver of Premium, in accordance with the Insurance Distribution Directive.

Key documents

Online Services

LV= Doctor Services

LV= Doctor Services gives your client access to six expert medical services in one app

Find out more here

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Need more cover?

Take a look through the other protection products we offer within our Flexible Protection Plan.

View our Flexible Protection Plan

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Trusts

See our trust options and use our Online Trust tool to find the option most suited to your client's needs.

More about our trusts

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Member benefits

Taking out a Family Income Benefit policy entitles your client to member benefits.

More about our member benefits

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Contact us

Read more about where we're based and all of our contact information.

How to contact us

FOR UK FINANCIAL ADVISERS ONLY
Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK