If you’re undecided on your client’s suitability for Family Income Benefit, we’ve gathered the key information to help you make an informed comparison:
Detail
Family Income Benefit - Level cover
Family Income Benefit - Inflation-linked cover
Waiver of premium
Type of payout
Monthly payments (can choose to convert payments for a reduced lump sum payment at claim stage).
Monthly payments (can choose to convert payments for a reduced lump sum payment at claim stage).
Pays the policy monthly premiums after a waiting period.
Term
Minimum 5 years.
Maximum 50 years
(subject to age limits as below).
Minimum 5 years.
Maximum 50 years
(subject to age limits as below).
To 84 or to the end of the plan term if earlier.
Minimum age attained at entry
17
17
17
Maximum age attained at entry
84
79
59
Maximum age attained at end of policy term
89
84
To age 84 or the end of the plan term if earlier.
Minimum premium
£5 a month.
£5 a month.
Based on total plan premium.
Maximum claim period
Until the end of the policy term.
Until the end of the policy term.
To age 84 or the end of the plan term if earlier.
Waiting period
N/A
N/A
6 months*
Eligibility criteria
Your client must be a permanent UK resident.
Your client must be a permanent UK resident.
Your client must be a permanent UK resident.
Payment frequency
Monthly by Direct Debit.
Monthly by Direct Debit.
N/A
Extras
Pay my mortgage facility.
LV= Doctor Services.
LV= Member benefits.
Pay my mortgage facility.
LV= Doctor Services.
LV= Member benefits.
N/A
Guaranteed increase options (limits apply – please see the policy conditions for full details)
Mortgage increase.
Rent increase.
Marriage and civil partnership.
Converting a joint life policy to two individual policies.
Divorce and dissolution of civil partnership.
Having a child – by birth or legal adoption.
Basic salary increase of at least 10%.
Significant career progression- basic salary increase of at least 20%.
Mortgage increase.
Rent increase.
Marriage and civil partnership.
Converting a joint life policy to two individual policies.
Divorce and dissolution of civil partnership.
Having a child – by birth or legal adoption.
Basic salary increase of at least 10%.
Significant career progression- basic salary increase of at least 20%.
*If clients have other policies in their FPP plan then their waiting period may be shorter that this, to match any IP or PSP policy included in their plan.