Family Income Benefit

Monthly benefit
Not a lump sum
Set term
To match your needs
Cost-effective
Affordable cover
What we arrange
✓Monthly family income cover
✓Matched to your mortgage term
✓Alongside life & critical illness
✓Written in trust
✓Cover for dependent children
✓Reviews as your family grows
Family Income Benefit pays a regular monthly income rather than a lump sum, replacing lost earnings for your family for the rest of the policy term, often the more affordable way to protect them.

Family Income Benefit is a form of life insurance that pays a regular monthly income rather than a single lump sum if you die during the policy term. For families with children or ongoing financial commitments, this can be a more practical form of protection, replacing the income your family would lose, rather than leaving them to manage a large capital sum.

How Family Income Benefit Works

You choose a monthly benefit amount and a policy term. If you die within that term, your beneficiaries receive the chosen monthly amount for the remainder of the term, tax-free. The payout continues until the end of the original policy term, not indefinitely.

For example, a £3,000 per month Family Income Benefit policy taken over 25 years, with a claim in year 5, would pay £3,000 per month for the remaining 20 years.

Family Income Benefit vs Standard Life Insurance

  • Life insurance: Pays a lump sum on death, useful for paying off a mortgage or providing a capital sum
  • Family income benefit: Pays a monthly income, better suited to replacing ongoing household income and day-to-day living costs

Many clients use both in combination, life insurance to clear the mortgage and family income benefit to replace lost earnings. This approach can provide comprehensive protection at a lower total cost than two separate lump-sum policies.

Talk to a protection adviser →

Family Income Benefit, your questions answered

What is family income benefit?
It is a type of life insurance that pays a regular, tax-free income to your family, rather than a single lump sum, if you die during the policy term. It is designed to replace your salary and help cover everyday living costs.
How is it different from ordinary life insurance?
Standard life cover pays one lump sum; family income benefit pays a monthly or annual amount for the rest of the policy term. Many families find a regular income easier to manage than a large one-off sum, and it is often very cost-effective.
Who is it best suited to?
Parents and anyone whose family relies on their income to cover ongoing bills, childcare and living costs. It is a straightforward, affordable way to make sure day-to-day life can continue if the worst happens.
Can I combine it with other cover?
Yes, it works well alongside a lump-sum life policy to clear the mortgage, and with critical illness cover. We design the combination around your family's needs and budget.