Family income benefit explained

What is family income benefit insurance?

This specialised protection policy helps take care of your family financially after you’ve passed away.

Don’t want the payment to be yearly? This benefit package pays a monthly benefit to your loved ones for as long as you’re covered.

For example, if you choose £20,000 worth of annual cover, your family will receive just over £1,666 a month for the policy term. You might set the term for 20 years and pass away after 5 years, meaning they will receive payments for 15 years.

You may wish to add critical illness cover as part of this policy, as this will replace the income of a critically ill person.

With life insurance and/or critical illness covering any mortgage balance, have peace of mind that family protection will provide a monthly payment to support your family and their lifestyle.

How does family income benefit work?

Once you’ve decided how much your family need to maintain their lifestyle, this will be incorporated into your policy. 

Naturally, the higher the value, the higher your premiums will be.

If you pass away, your family may still choose between receiving a lump sum or a monthly benefit. This will depend on their circumstances at the time and will be completely their choice.

Family income benefits can also cover terminal illnesses and may be linked to the retail price index (RPI) meaning the benefits will increase with the cost of living.

Find out more about life Insurance & critical illness cover.

How much will it cost?

The cost of your policy will depend on a few factors:

  • your age
  • the policy term
  • your health status
  • the annual amount requested

Who is family income benefit suitable for?

If you have financial dependents, this cover will make sure your family can keep up with mortgage payments, bills and keep their lifestyle as it is now.

This consistency is key for their well-being. In tough times, the last thing they need are financial worries and this policy helps to alleviate these.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495 depending on your circumstances.

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    What our customers ask about family income benefit

    Lendese have hundreds of policy solutions. With our expert advice and guidance on which type of protection is right for you, we can make sure you every angle is covered.


    Family income benefit pays an established monthly amount to your family after your death or serious illness diagnosis.

    Whereas, income protection protects you if you’re unable to work through illness or injury.

    If you wish, the policy can be written into a trust although your family will not receive the benefit in Inheritance Tax avoidance.

    As a first time buyer you could obtain a mortgage with as little as 5% deposit. However you would usually receive a better interest rate with a larger deposit.

    No one knows what the future holds. With family income benefit, you can provide your family with a regular, stable income to allow your partner and children to maintain the same quality of life they had when you were with them.