Family Income Benefit
Replace your income for your family if the worst happens, with a regular monthly payment instead of a lump sum.
Family Income Benefit is one of the most underused forms of life cover in the UK, and often the most sensible for families with young children. As a whole of market adviser with over 20 years of experience, I help families across Essex and the UK put monthly income protection in place at a surprisingly affordable cost.
A Monthly Income for Your Family, Not a Lump Sum
Most life insurance pays a single lump sum. Family Income Benefit instead pays a regular tax free monthly amount to your loved ones for the remainder of the policy term, so it feels more like a replacement salary than a windfall to manage. It’s ideal if you want to make sure the mortgage, bills, school runs, and everyday costs keep getting paid if you’re not there.
What to Expect
- Free initial chat to understand your family’s monthly outgoings
- Advice on how much monthly income would genuinely be needed
- Whole of market comparison across a wide panel of major UK insurers
- Clear comparison with traditional lump sum life insurance
- Guidance on writing your policy in trust for speed and tax efficiency
- Support through medical underwriting if needed
- Full application management through to policy in force
FAQs
How is Family Income Benefit different from normal life insurance?
Standard life insurance pays a single lump sum. Family Income Benefit pays a tax free monthly income for the rest of the term, which many families find easier to manage and closer to how their household actually runs.
How much monthly cover should I take out?
A sensible starting point is the after tax income your family would lose, or the total of your essential monthly bills, mortgage, and childcare. I’ll work through the numbers with you.
Is Family Income Benefit cheaper than lump sum life insurance?
Often yes, because the total potential payout reduces as the term progresses. That means you can protect your family for a lot less than equivalent lump sum cover, especially when children are young.
Is the monthly payout taxable?
Payouts from personal Family Income Benefit policies are generally paid tax free to your beneficiaries, particularly when the policy is written in trust. I’ll arrange the trust for you at no extra cost.
Can I combine Family Income Benefit with other protection?
Yes, and it’s often the smartest approach. A Family Income Benefit policy alongside a smaller lump sum life or critical illness policy can give your family both the monthly stability and the one off cash buffer they’d actually need.