Protection
Family Income Benefit: A Monthly Income for the Ones You Love
Instead of one lump sum, this pays your family a regular monthly amount for the rest of the policy term. For households used to a monthly salary, it is often the easier thing to manage.
- Monthly, not lump sum
- Often the cheapest life cover
- Free trust setup
- Whole of market
Free, no obligation, and no credit check to get started.
A lump sum of 300,000 pounds sounds reassuring until a grieving family has to decide what to do with it. Family income benefit replaces the salary that stopped, in the rhythm the household already lives by.
It is a form of term assurance, so it pays only if you die during the term.
How It Works
You choose a monthly amount and a term. If you die during the term, the insurer pays that amount every month until the term ends. Die in year two of a twenty year policy and the family receives eighteen years of payments. Die in year eighteen and they receive two.
That reducing total is exactly why it costs less than level term cover for the same monthly benefit.
Who It Suits
Families with children at home, where the need is clearly time limited: until the youngest finishes education. Also anyone who would rather their family did not have to make investment decisions in the worst month of their lives.
A common arrangement is decreasing term assurance to clear the mortgage, plus family income benefit to replace the salary. Together they cost less than one large level term policy and map more closely to what the family actually needs.
Choosing the Monthly Amount
Start with your take home pay, then subtract what the household would no longer spend and add anything that would become necessary, such as childcare. The answer is usually lower than your full salary, which keeps the premium down.
Index Linking
Most insurers offer cover that rises with inflation, with the premium rising alongside. Over a twenty year term this matters a great deal, because a fixed 1,500 pounds a month will buy considerably less by the end than at the start.
No paperwork and no credit check. An adviser calls you back with your real options.
Start nowor call 0117 370 6363Frequently Asked Questions
Can the family take it as a lump sum instead?
Some insurers allow it, usually at a reduced total. Ask before assuming, as it is not universal.
Is the monthly benefit taxed?
Payments from a personal policy are normally free of income tax. Writing the policy in trust helps with inheritance tax.
What if I outlive the term?
Nothing is paid and nothing is returned, the same as any term assurance.
Can I have it as well as normal life cover?
Yes, and many families do. Decreasing term for the mortgage plus family income benefit for the salary is a common and cost effective pairing.
See what a monthly benefit would cost
Often less than people expect, particularly alongside a mortgage policy.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Family income benefit has no cash in value at any time.
Cover levels, premiums and policy terms depend on your age, health and circumstances. Policy exclusions apply and are set out in the insurer’s key features document.
For mortgage and insurance we do not charge any fee as we are remunerated by commission from lenders and providers.
Infinity Financials Ltd is directly authorised and regulated by the Financial Conduct Authority, FCA registration number 993949. Infinity Mortgage is a trading style of Infinity Financials Ltd.