Risk Clinic: FIB on critical illness

clock • 4 min read

I have a client making a claim on a critical illness (CI) policy. The provider is suggesting they take a lump sum payment rather than the family income benefit (FIB) they originally bought. I realise there are various arguments for each side, but what would be the one that swings it toward FIB?

  Alan Lakey   Highclere Financial Services   Critical illness cover within a family income benefit plan is relatively uncommon. Few providers offer it and even fewer advisers recommend it. So within this scenario, choosing FIB suggests that the matter was considered carefully by both adviser and client, and that the plan was selected precisely because an income was more desirable than a capital sum. Of course, circumstances may have changed and commuting to a lump sum may now be advantageous, particularly if a mortgage or debt exists that cannot otherwise be repaid. H...

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