Family Income Benefit
A type of life insurance policy that pays out a regular, tax-free monthly income to your family if you die during the policy term.
What Is Family Income Benefit Insurance?
Family Income Benefit (FIB) is a type of life insurance policy in the UK that provides your loved ones with a regular, tax-free income if you pass away during the policy term. Instead of a one-off lump sum, your family receives monthly or annual payments, making it easier to manage day-to-day living costs and financial commitments.
- Steady Financial Support – Provides your family with a consistent income to cover everyday costs.
- Cost-Effective Cover – Often more affordable than traditional life insurance.
- Tailored Protection – Choose the length and level of cover to suit your family’s needs.
How can we help you?
Contact us at Templar Mortgages - 0121 453 4244.
How Family Income Benefit Works in the UK
Family Income Benefit is designed to replace your income and provide financial stability for your dependants if you pass away during the policy term. Instead of paying out a lump sum, the policy provides your family with a steady, tax-free income until the end of the chosen term, which can help cover everyday costs such as household bills, childcare, and education. The length of the cover is flexible, and many people choose a term that aligns with key financial responsibilities, such as raising children or paying off a mortgage. Because the overall potential payout decreases as the policy progresses, Family Income Benefit is often more affordable than standard life insurance. This makes it particularly attractive to young families who want reliable and practical financial protection for their loved ones.
Is Family Income Benefit Right for You?
Family Income Benefit is a cost-effective way to protect your family’s financial future. By providing a steady stream of income rather than a lump sum, it ensures that everyday expenses are covered and reduces the risk of money being mismanaged. For young families or households dependent on one main income, it can be a practical and reassuring form of life insurance.
FAQ: Family Income Benefit
How does Family Income Benefit differ from standard life insurance?
Unlike a lump sum payout, FIB pays a regular income to your family until the end of the policy term.
How long does the cover last?
You can select a policy term, typically 10–25 years, often aligned with raising children or repaying major debts.
Can I add critical illness cover to Family Income Benefit?
Yes, many UK insurers allow you to add critical illness protection, providing income if you are diagnosed with a serious illness.
How much Family Income Benefit should I take out?
It depends on your family’s monthly expenses and how long they would need financial support if you were no longer around.
How much does Family Income Benefit cost in the UK?
Premiums vary based on your age, health, lifestyle, and chosen cover amount, but it is often cheaper than traditional life insurance due to its decreasing liability.
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Critical Illness Cover
