Family Income Benefit

Pay less for the same great cover from insurers you know and trust.

Family income benefit is designed to pay a regular income if you die.

An alternative to level term insurance, family income benefit aims to replace lost income if the person insured dies.

Level term insurance pays out a one off lump sum if the person insured dies. Family income benefit pays a monthly income instead. When you set up your policy you choose the level of annual cover you need and how long you want the policy to run for.

Let’s say a customer chooses £20,000 worth of annual cover and a term of 25 years. 10 years into the policy term unfortunately they die and a claim is made. That policy has 15 years still to run and will pay £20,000 worth of cover every year for those 15 years.

These policies are suitable for people with young families who wish to protect against the loss of income provided by either or both parents.

Critical illness cover can be added to the policy. This would produce an income in the event of certain serious illnesses being diagnosed.  The insured would not have to die for a claim to be made.

Family income benefit can used for other reasons. They can form part of divorce settlements. Whilst divorcing couples can often agree on monthly maintenance payments, the consequences of the death of either parent is often overlooked.

Family income benefit can provide protection should the insured die before the children become financially independent.

If you’re looking for joint life family income protection it might be worth you comparing the cost of two single policies. It’s often only slightly more expensive to have two single life policies. With two single policies you have double the cover if both people insured were to die.

Premiums are normally guaranteed not to change. You can choose reviewable premiums but they could increase over the years.

How it works

Family income benefit will pay your dependants an annual income from the time you die to the end of the policy term.  The income is normally tax free and the money can be used for any purpose.  Premiums are normally paid monthly or annually by direct debit.

How much does family income benefit cost?

The premium will depend on a number of factors. How much cover you need, the term of the policy, your age and your health.

Why use Moneyworld?

Family income benefit can be a really cost effective way of getting insured. We will compare cover from all the leading providers and guarantee to offer the lowest premiums in the UK.

Critical Illness Cover

An optional extra available on all life insurance policies. Provides a lump sum payment on the diagnosis of certain serious illnesses.

Level Term Insurance

The most popular type of life insurance. Your cover doesn’t reduce and will pay out your chosen lump sum if you die during the term of the policy.

Mortgage Life Insurance

This type of policy is designed to pay off your mortgage in the event of death. Cover reduces as you pay off your mortgage.