LifeSearch attacks Family Income Benefit commuting

Matt Morris, policy adviser at LifeSearch, says: "The best-laid plan to protect a customer's family with FIB is often thwarted at claims stage when insurers offer the option to commute the benefit into a lump sum. "Beneficiaries often do not know the benefits of receiving an income and often go for the tempting lump sum. This reduces the insurer's administration costs, but means that the policy fails to do what it was bought for - to provide a long-lasting income." He says taking the time to explain FIB to a customer is pointless if the beneficiaries end up taking a lump sum. "The ...