Using family income benefit to protect school fee payments

6 May 2020
Deciding to educate your child or children privately is, for most families, a huge financial decision.

Family playing cardsThe Best Schools website shows day fees for senior schools can now range from £12,000 to £25,000 each year1 making your children’s education probably the most expensive outlay in your life after mortgage payments.

But what would happen if the main wage earner became ill and couldn’t work or died prematurely? For most families this would make the school fees commitment very difficult or even impossible to maintain.

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 be to a much bigger, less personal environment, losing the familiarity of their surroundings and also leaving behind their friends and teachers.

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 daughters living costs.

Family income benefit (FIB) is an inexpensive solution that helps take a load off the client’s mind. It means that should the worst happen, their family would have a financial coping strategy. Rather than paying out a lump sum on death, it pays out a regular tax-free income until the end of the term. Cover is also available for earlier diagnosis of a critical illness.

Menu plans allow clients to take several different FIB covers all under one policy to create bespoke cover for each child which can 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 if they die. It can be especially attractive for clients with young families as they might want cover to run until their children are grown up. This income could be used to meet everyday expenses or to pay for specific on-going expenses such as school or university fees.

Source: 1 –, April 2020


About the author

Shelley Read

Senior Protection Development and Technical Manager

Shelley has worked in financial services for over 25 years, starting her career in the Mortgage world and then from 2008 in protection field Face to Face Sales. Shelley was originally with Bright Grey and Scottish Provident and latterly representing Royal London in the West Midlands and Warwickshire area. Shelley moved to her current team in July 2017 and now covers all of the UK. Shelley is involved in developing adviser facing content, presenting, writing articles and commenting for the press. Shelley therefore has an in-depth knowledge of the mortgage and protection market and her strengths have been training and coaching advisers to recommend protection solutions to their clients and delivering this coaching in an easy to understand and simple way. Shelley’s area of expertise also includes Family Protection and Business Protection. Shelley hosts a monthly book club in Sutton Coldfield and also enjoys attending various cookery courses both at home and abroad to improve her cooking skills and her love of entertaining friends and family.

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.