Family Income Benefit

Family income benefit (FIB) is a type of life insurance that pays out a regular tax-free income to your family from the date of your death until the end of the policy term. Unlike traditional life insurance (which pays a single lump sum), FIB replaces your salary month by month — making it easier for your family to manage everyday bills, childcare and mortgage payments without having to invest or budget a large sum.

How Family Income Benefit Works

• You choose a monthly or annual benefit amount (e.g. £2,000 per month)
• If you die during the policy term, your family receives that income until the term ends
• The earlier a claim is made, the more your family receives in total
• Payouts are completely tax-free
• Can be written in trust so payments bypass probate and inheritance tax

Why Choose Family Income Benefit?

• Affordable — typically 30–50% cheaper than equivalent level term life insurance
• Mirrors real life — replaces your monthly salary rather than providing a lump sum
• No investment risk — your family doesn't need to manage or invest a large payout
• Ideal for young families — covers the years when your children are dependent
• Can include critical illness — add critical illness cover for extra protection

Who Should Consider Family Income Benefit?

• Parents with young or school-age children
• Families where one parent would need to reduce work hours
• Anyone who wants their family to maintain their current lifestyle
• People who want affordable life cover with high effective payouts
• Couples who rely on both incomes for the household budget