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Family income benefit

What is family income benefit insurance?

Family income benefit life insurance is a type of term life insurance that pays out a regular income, rather than a lump sum of cash. 

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How does family income benefit insurance work?

You choose the term length and annual benefit and if you die during the term, your insurer will pay a regular income to your family for the remaining duration of the policy’s term. For example, if you take out a 20 year policy and die after 15 years, your insurer will only pay an income for the remaining 5 years.

 

How much does family income protection cost?

The cost of family income benefits differs depending on a variety of factors including your age, your lifestyle and how much annual income you want as a payout. Your premiums will be more expensive the older you are and they’ll also increase if you choose a higher annual income.
 


Family income benefit vs level term life insurance

A family income benefit policy is typically cheaper than a level term insurance policy because the amount the insurer pays out decreases over the policy’s term.
 
 
 
 

What are the pros and cons of family income benefit insurance policies?

 

Pros

  • Gives your family a regular income in the event of your death
  • Premiums are often low and affordable
  • Avoids the complications of managing a large lump sum of money

Cons

  • Only pays an income if you die during the term
  • Not suitable for clearing large debts
  • You can’t claim any money back if you don’t die during the term
  • Only pays out the remainder of the term, which could be as little as a few months
 
 

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1st

Our
Review Score

9.5/10

based on 4523 reviews

Life Insurance Quote*

£7.96

per month

With Critical Illness Cover**

£26.06

per month

Maximum Cover Limit****

£750k

2nd

Our
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9.4/10

based on 72485 reviews

Life Insurance Quote*

£8.61

per month

With Critical Illness Cover**

£25.73

per month

Maximum Cover Limit****

£1.5m

3rd

Our
Review Score

9.0/10

based on 55431 reviews

Life Insurance Quote*

£8.48

per month

With Critical Illness Cover**

£25.47

per month

Maximum Cover Limit****

£5m