Family income benefit.
A form of life insurance that pays a regular monthly income (rather than a lump sum) to your family for the remainder of the policy term if you die. Often the most cost-effective way to replace a lost income.
Monthly income, not a lump sum.
Family income benefit is a form of life insurance that pays a tax-free monthly income to your family if you die during the policy term. Because the total payout naturally reduces over time (the payments only continue until the policy ends), it is often significantly cheaper than a level-term life policy for the same effective cover.
- Tax-free monthly income — Payments go straight to your beneficiaries, tax free, until the policy ends.
- Cheaper than level term — Because the total payout reduces over time, premiums are lower than an equivalent lump sum policy.
- Sized around income — Easier to size than lump-sum life insurance — you just replace what you actually earn.
- Index-linked options — The monthly income can rise with inflation each year.
- Can be combined with life cover — Many families use family income benefit alongside a smaller lump sum policy.
Three steps. One person. No jargon.
The same process for every family income benefit enquiry, whether it is your first mortgage or your fifth.
The household conversation
We start with who depends on your income and what your household commitments look like, before we look at any policy.
Compare the small print
We compare exclusions, definitions, and premiums across the market. Cheaper is not always better on protection.
Written recommendation
You get a plain-English report explaining what we recommend, what it covers, what it does not, and what it will cost.
What you will pay.
We do not charge you a fee for protection advice. We are paid a commission by the product provider, which is included in the premium and disclosed to you in writing before you commit to anything.
Our recommendation is based on what is right for your household, not on which provider pays the most commission.
Questions we get about family income benefit.
01When would I choose family income benefit over life insurance?+
When your main concern is replacing your income for your family (rather than clearing a large debt like a mortgage). Because payments only continue until the policy ends, it is often much cheaper than an equivalent-value life policy for the same effective protection.
02How much income should I insure?+
A reasonable starting point is enough to replace your take-home pay until the youngest child is 18 or 21. We work through the maths on the first call.
03Is the payout taxable?+
No. Family income benefit payments are treated as capital and are paid tax-free to the beneficiaries.
04Can I combine it with a lump sum policy?+
Yes, and many families do. A small lump sum covers immediate costs (funeral, mortgage acceleration) and the monthly income covers ongoing household running costs.
Where clients typically go next.
Life happens.
Let’s take care of it together.
Book a call directly with Anthony. Evenings and weekends available. No forms up front, no pressure.