FIB premiums are based on the amount of cover and how long you want it, health, lifestyle (such as whether you smoke) and age. You can typically choose a level income or pay more for it to rise by a set amount each year, but for this you usually need to seek professional financial advice.
Waiver of premium cover is usually available. This ensures premiums are met if you fall ill and cannot work. Some policies offer a critical-illness option, which pays out if you develop a serious illness such as cancer. However, all these extras add to the cost.
When FIB isn’t suitable
This type of policy shouldn’t be used to cover a mortgage or other debts – insurance that provides a lump sum is usually more appropriate for that. This is to meet the continuing cost of living. There is more on these types of insurance – and it makes sense to look at all the different types of insurance available to you before deciding which might best meet your needs.
More articles you might like
What is life insurance?
Life insurance might sound confusing, but it is actually very simple. Here’s a guide to the different types on offer
Different types of life insurance
We all know we need life insurance, but with so many different types on offer, how do you choose which one is right for you?
House buying top tips: If I'd known then...
Six house-buying tips from those who’ve done it before