Family Income Benefit is a form of life cover designed to provide regular payments, rather than one lump sum, after a valid claim during the policy term. The benefit normally runs only for the remaining term. The amount, claim conditions, premium pattern and any terminal-illness option depend on the policy; there is no universal tax, payout or price guarantee.
1. Supporting children
A regular benefit could help a surviving carer meet household and childcare costs while children are financially dependent. Compare the term and amount with the period of support you want.
2. Helping with ongoing household bills
Some households prefer a defined monthly benefit to a lump sum they would need to manage. Consider existing savings, employer benefits, debts and inflation when assessing whether it fits.
3. Covering a planned maintenance period
People with a defined period of financial responsibility, such as child-maintenance commitments, may wish to compare regular-benefit and lump-sum options. MoneyHelper explains this use of Family Income Benefit.
Tax treatment and beneficiary arrangements depend on circumstances and may change; seek appropriate tax or legal advice where relevant. Read our Life Insurance overview or contact IM-Insured about an adviser enquiry. No price or policy availability is promised here.
