Family Income Benefit

Family Income Benefit pays a regular tax-free income to your family if you die during the policy term, rather than a single lump sum, replacing the income your family would otherwise lose.

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Key benefits

Why people choose Family Income Benefit

Provides ongoing financial support for dependants
Helps replace lost household income
Can be more affordable than traditional life insurance
Ideal for families with young children

What's typically included

What Family Income Benefit covers

A regular, tax-free income paid to your family from the date of a valid claim until the end of the policy term
Cover typically decreases in overall value over time, as fewer years of income remain to be paid
Can be arranged to align with the years your children are financially dependent
Often more cost-effective than an equivalent lump sum life insurance policy

Important to know

What's not usually covered

Every policy is different, so exact exclusions depend on the insurer and your individual circumstances. Common exclusions to be aware of include:

No payment is made if death occurs after the policy term has ended
Death by suicide within the first 12 months of the policy is typically excluded
Non-disclosure of relevant medical history or lifestyle factors can affect a claim
The income normally stops once the original policy term is reached, even if paid for only a short time

Common questions

Family Income Benefit FAQs

Quick answers to the things people ask us most. Can't find what you're looking for? Get in touch and we'll be happy to help.

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Our Blackburn-based advisers are happy to talk it through, with no obligation.

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How is Family Income Benefit different from Life Insurance?

Life Insurance usually pays a single lump sum, while Family Income Benefit pays a regular income for the remainder of the policy term, which can be simpler for a family to budget with day to day.

Can I choose how long the income is paid for?

Yes, the policy term is set when you take out the cover, often to match the years until your children become financially independent.

Is Family Income Benefit cheaper than Life Insurance?

It can be, because the total amount paid out reduces the longer the policy runs, which is often reflected in lower premiums for a similar level of protection early in the policy's life.

Can the income be taken as a lump sum instead?

Some policies allow the beneficiary to request a lump sum in place of the regular income, though this may reduce the overall amount received. It's worth discussing this option with an adviser.

Want to talk through Family Income Benefit?

Tell us what matters to you and one of our advisers will help you explore your options.

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