Family income benefit can help pay the school fees

Family income benefit can help pay the school fees

Deciding to educate your child or children privately is, for most families, a huge financial decision.

Day prep school fees can range from £10,000 to £20,000 per year or more in London, and day fees for senior schools ranging from £12,000 to £25,000 per annum.* Best schools Oct 2020.

This can mean that your children’s education is probably the most expensive outlay in your life, after your mortgage repayments.

But what would happen if the main wage earner died prematurely? For most families, this would make their school fee commitment very difficult or even impossible to maintain.

Put yourself in your child’s shoes…

Imagine a child already having to deal with the upset of their mum or dad being ill or even worse, dying prematurely. How much worse would this be if they also had to deal with moving to a new school?

Often this move would involve being moved to a much larger and less personal environment, and losing the familiarity of their surroundings, friends and teachers could have a detrimental impact on their general wellbeing.

The same may apply to young adults studying at university. Again, should the worst happen, it may not be possible for a parent to support their son or daughter’s living costs.

What can be done to protect their comfort zone when they need it most?

What can be done to protect their comfort zone when they need it most?

Family income benefit (FIB) is an inexpensive solution that could help to take a load off your mind, as should the worst happen, the family left behind would have a strong financial strategy in place to help them cope.

Rather than paying out a lump sum on death, it pays out a regular tax-free income until the end of the term of the policy. Cover is also available for earlier diagnosis of a critical illness.

It is also possible to take several different FIB covers to create a bespoke cover for each child, which could include different amounts and terms to suit their needs.

Not protecting the commitment of school fees is a risk

Why take that risk when FIB is a low-cost, easy way for a client to provide their family with an income rather than a lump sum in the event of their death?

It can be especially attractive for clients with young families, as they may want their cover to run until their children are grown up and not as financially dependent upon them. This income could be used to meet everyday expenses or to pay for specific on-going costs such as school or university fees.

Source FT Adviser Magazine October 2020

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof


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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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