Family Income Benefit Insurance

Family income benefit (often called FIB) is a type of life insurance designed to provide your family with a regular, tax-free monthly income if you die during the policy term, rather than paying a single lump sum.

Instead of one large payout, the policy pays an ongoing monthly benefit from the date of death until the end of the agreed term. This can help your family maintain financial stability by covering everyday living costs such as mortgage or rent payments, household bills, childcare, groceries, and other regular expenses.

Because the payments are structured as income rather than a lump sum, family income benefit can provide reassurance that your dependants will continue to receive financial support over time when they may need it most.

As with all insurance products, benefits are subject to policy terms, conditions, and eligibility.

The main difference is how the benefit is paid.

Standard life insurance typically pays a one-off lump sum if you die during the policy term. Family income benefit, by contrast, pays a regular monthly income to your family from the date of death until the policy ends.

For example, if you had a 25-year FIB policy and died 10 years into the term, your family would continue receiving monthly payments for the remaining 15 years.

Family income benefit is often more affordable than level term life insurance for a similar level of financial protection because the potential total payout reduces over time. The later a claim is made within the policy term, the fewer monthly payments the insurer would make.

Many people choose to combine family income benefit with a separate lump-sum life insurance policy using life insurance to help clear debts such as a mortgage, while FIB helps replace ongoing household income.

Family income benefit can be particularly valuable for families with young children, couples with shared financial commitments, or anyone whose dependants rely heavily on their monthly income.

Rather than leaving loved ones with the responsibility of managing a large lump sum, FIB provides a predictable monthly payment that can make budgeting and long-term financial planning more manageable during a difficult time.

It is often well suited to:

• Parents with dependent children
• Households reliant on one main income
• Families with ongoing monthly commitments
• People who want to supplement existing life insurance cover

Many people use family income benefit alongside other protection policies, such as life insurance or critical illness cover, to create a more complete financial safety net for their family.

 Family income benefit is generally more affordable than standard level term life insurance because the insurer’s potential payout reduces over the course of the policy term.

The cost of cover will depend on several factors, including:

• Your age
• Occupation
• Your health and medical history
• Family medical history
• Smoking status
• The amount of monthly benefit required
• The length of the policy term
• Any additional policy features selected
  
  
  

Because policies and pricing can vary significantly between insurers, speaking with a broker can help you compare options across the market and understand how family income benefit could fit alongside any existing life insurance, workplace benefits, or other protection policies you already have.

All policies are subject to underwriting, insurer criteria, and terms and conditions.