Family Income Benefit

Death or illness payouts as a regular income
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Why Family Income Benefit?

  • It's a cost-effective way to protect against death or serious illness
  • Think about it as life insurance but paid monthly so it can cover your family's ongoing overheads over a time period chosen by you
  • It's reliable, consistent and easy to manage, while a lump sum payout may be overwhelming

Why expert advice makes the difference

  • Family income benefit is often bought to complement a lump sum life insurance policy
  • Family income benefit is a tax-free monthly income that runs for a period chosen by you
  • Family income benefit, income protection, critical illness cover ... if you're starting to feel confused don't worry - we'll talk you through each option

Watch our Family Income Benefit video

Frequently asked questions about this type of policy

You choose how long your family income benefit policy term lasts, for instance until your children are financially independent, or until your mortgage has been paid off. 

With family income benefit, the risk to the insurer decreases with every year that there isn’t a claim. If you choose a 23-year term and passed away a month into this term, the payments would begin from the date of death through to the end of the term. If you passed away 20 years into the term, the payments would again begin from the date of death but only pay out for two years, as this is what is left of the term.

For more information, read this blog.

Whilst life insurance will pay out a lump sum to your beneficiaries if you pass away during the term, family income benefit provides a regular monthly sum of money for a set period of time. Due to the different ways that these two life policies pay out, family income benefit can often work out as the cheaper option.
Family income benefit pays beneficiaries after the insured person passes away or is diagnosed with a serious illness. Income protection protects you if you’re unable to work through illness or injury.
No, family income benefit is not usually taxable. The income is tax-free, normally paid monthly, or sometimes quarterly or annually.
Yes, it is possible to take out a joint policy. It works the same way as joint life insurance, in that it will only pay out once - usually after the first policy holder passes away. It works out cheaper than you both having separate cover, but the payout may be less.
Yes, but only if you choose for it to rise with inflation. It’s a good idea to get a policy that keeps track of rising prices - especially if it could be paying out over a long period of time.

£231,843 - the cost of raising a child until their 21st birthday

£119,937 - the average outstanding mortgage balance

Family Income Benefit - advice and guides

We've picked 3 guides we think you'd like, but you can visit the Advice & Guides hub for more.

A quick guide to family income benefit

The two-minute guide to family income benefit.

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Life insurance for the whole family

Family life insurance protects you and your children, get the details in this guide!

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£231,843 - the cost of raising a child until their 21st birthday

£119,937 - the average outstanding mortgage balance

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