family income benefit

family income benefit assurance

What is Family Income Benefit?

Family income benefit is a type of life assurance that pays out a regular income if a life assured dies. Benefits are then paid monthly to the beneficiaries, until the end of the policy term.

Family income benefit is a cost-effective way of providing support to a family in the event of the death of a parent/policyholder.

How does family income benefit work?

You decide what monthly benefit your family/loved ones would need each month if you were to die, and how long this income would be required for. Typically, this may be until children reach an age of being financially independent i.e. 18, 21 or more often now 25.

As an example, you calculate that your family would need £1500 a month until your youngest child finishes schooling, this is in 15 years’ time. You would therefore apply for a policy with the benefit of £1500 per month for a term of 15 years.

This would mean that in the event of a claim, the £1500 a month would be payable to your family until the end of the policy.