In plain English
Instead of one big lump sum, Family Income Benefit pays your family a regular monthly income if you die during the policy. It pays from the date of the claim until the end of the term, so it replaces the income you would have brought in while your children are growing up. Because the total payout reduces as time goes on, it’s often one of the most affordable types of life cover.
You have young children or other people who rely on your income, and want them to keep paying the everyday bills.
How much monthly income your family would need, how it works alongside mortgage cover, and protecting against rising prices.
The details
Who should consider Family Income Benefit? This policy is suitable for couples who rely on each other’s income and who have young families or older financially dependent children.
Even if you are single and have no financial dependants, you may want to provide additional financial security for your parents in later life. The main difference between Family Income Benefit and Term Assurance or Mortgage Life Assurance is that, rather than paying out a lump sum on your death, this policy will pay out a monthly tax-free income for the term of the policy. Term Assurance or Mortgage Life Assurance is designed to pay off your mortgage, but if the worst happens, have you considered how your dependants will manage without your income?
How does Family Income Benefit work? We will review your current income and expenditure and assess your income requirements for the future. We will then recommend an annual sum assured: this is the amount the policy will pay out each year for the remainder of the term. Payments can be made monthly and are tax free. Compared to Level Term Assurance and Mortgage Life Assurance, the monthly premiums for Family Income Benefit are generally less expensive.
Questions people ask us
Is the income taxed?
How is it different from level term or mortgage life cover?
How long should the policy last?
Can my partner and I both be covered?
How it works
- Drop us a message
- Have a proper chat
- We keep looking after you