Protection
Family Income Benefit
A tax-free monthly income paid to your family if you die during the policy term. Often the most affordable way to give your dependants proper long-term protection.
What Is Family Income Benefit?
Family income benefit (FIB) is a type of life insurance that pays your family a regular monthly income rather than a single lump sum. If you die during the policy term, payments start straight away and continue until the policy ends.
For example, say you take out a 25-year FIB policy paying £2,000 a month and die in year 10. Your family would get £2,000 a month for the remaining 15 years, totalling £360,000. Die in year 24 and they'd get it for one year (£24,000).
Because the total potential payout gets smaller over time (similar to decreasing life cover), FIB premiums are significantly cheaper than level term life insurance. That makes it ideal for young families who need serious cover on a tight budget.
FIB vs Traditional Life Insurance
Family Income Benefit
Pays monthly • Feels like a salary • More affordable • Easier to budget with • Total payout decreases over time
Traditional Life Insurance
Pays a lump sum • Can clear the mortgage immediately • Higher premiums • Needs careful management • Fixed or decreasing amount
Who Is FIB Best For?
Families who need their income replaced, not a big capital sum to manage. Monthly payments feel like a salary, making budgeting straightforward for a surviving partner.
Young Families
Maximum cover at minimum cost during the years when children are most dependent.
Single Parents
If you're the only earner, FIB makes sure your children are looked after financially.
Tight Budgets
FIB typically costs 30-50% less than equivalent level term life insurance.