Family Income Benefit is a type of protection designed to provide ongoing financial support to your family if you pass away during the policy term.
Protecting your family financially is one of the most important parts of long-term planning. If your household relies on your income, it’s essential to consider how your loved ones would cope financially if you were no longer around.
Book an Appointment with our protection experts to see if you have sufficient cover.
Family Income Benefit is a type of life insurance that pays out a regular income, rather than a lump sum, if you pass away during the policy term. The income is paid to your family for the remainder of the policy period, helping to replace lost earnings.
Unlike traditional life insurance, which provides a one-off payment, FIB is designed to mirror a regular salary. This can make it easier for families to manage everyday living costs such as household bills, childcare, food, and education expenses.
FIB policies are usually set up to run until a specific point in time, such as when children are expected to become financially independent or when a mortgage is due to be repaid. The amount paid each month is agreed when the policy starts and remains fixed throughout the term.
This type of cover is commonly chosen by families with dependent children, particularly where one income is relied upon more heavily. It can help provide reassurance that essential costs can still be covered if the unexpected happens.
FIB is often used alongside other protection policies, such as life cover, critical illness cover, or income protection. Each type of policy serves a different purpose, and advice is important to ensure they work together effectively.
At iMAB, we help you understand whether FIB is suitable for your situation and how it fits into your wider financial protection planning.
A Family Income Benefit policy pays out if you pass away during the term of the policy. The payout is made as monthly income payments for the remaining length of the policy, rather than as a single lump sum.
For example, if you take out a 25-year policy and pass away 10 years into the term, the policy would typically pay a monthly income to your family for the remaining 15 years. This structure helps provide long-term financial stability rather than a one-off payment.
The level of income is chosen at the outset and should reflect the amount your family would need to maintain their standard of living. This may include covering everyday household costs, childcare expenses, or school-related costs.
FIB policies are usually more affordable than equivalent lump-sum life insurance policies, as the amount paid reduces over time. This can make them a cost-effective option for families looking for long-term income protection.
As with most protection policies, there are conditions and exclusions to be aware of. Policies typically pay out on death during the policy term, and it’s important to understand how terms such as terminal illness are defined.
Your circumstances may change over time, such as having more children, moving home, or changing employment. Regular reviews help ensure your FIB cover remains appropriate as your needs evolve.
Family Income Benefit is particularly suited to households where there are financial dependants, such as children or a non-working partner. It helps provide reassurance that essential costs can still be met if one income is lost.
This type of cover is often chosen by families with young children, where ongoing financial support is more important than receiving a single lump sum. Monthly payments can help cover everyday expenses and reduce financial pressure during a difficult time.
If your household relies heavily on one main income, FIB can form an important part of your protection planning. It helps ensure that your family is not forced to make immediate financial decisions if the unexpected happens.
FIB may also be suitable for homeowners who want to ensure mortgage payments and household costs can continue to be covered. While it does not usually repay a mortgage in full, it can support ongoing affordability.
However, FIB is not suitable for everyone. Some people may prefer the flexibility of a lump-sum payout, particularly if they want to clear debts or leave a specific inheritance.
That’s why independent advice is important. At iMAB, we help you compare FIB with other protection options and recommend solutions based on what’s right for your family — not what’s easiest to sell.
Choosing the right policy is about protecting your family’s future, which is why clear, independent advice is essential.
If you want to understand whether FIB is right for you, our advisers are here to help.
We offer: No-obligation conversations, clear advice on protection options, reviews of existing policies, appointments by phone, video, or face-to-face.
Speak to iMAB today to discuss Family Income Benefit and protect what matters most.
Life insurance usually pays a lump sum, while Family Income Benefit provides regular income payments for the remainder of the policy term.
This depends on your household expenses, dependants, and existing protection. Advice helps calculate a suitable level of cover.
Policies are often set to run until children are financially independent or a mortgage is due to end.
Policies are usually set up on an individual basis, but joint options may be available depending on your needs.
Yes. Family Income Benefit can help support mortgage payments and other household costs if one income is lost.
Most policies can be cancelled at any time, and cover may be reviewed if your circumstances change.
PLEASE NOTE FOR THESE INSURANCE PRODUCTS, TERMS AND CONDITIONS APPLY. THIS INFORMATION IS A SUMMARY ONLY
YOU WILL RECEIVE A FULL POLICY DOCUMENT UPON APPLICATION. THIS POLICY WILL SET OUT THE TERMS, CONDITIONS AND LIMITATIONS OF COVER PROVIDED UNDER THE PLAN
AS WITH ALL INSURANCE POLICIES, CONDITIONS AND EXCLUSIONS WILL APPLY
THE COST OF THIS INSURANCE DEPENDS ON SEVERAL FACTORS, SUCH AS YOUR AGE, WHERE YOU LIVE AND YOUR OCCUPATION. AS A RESULT, THE COST YOU WILL PAY IS BASED ON YOUR OWN CIRCUMSTANCES
