Family Income Benefit, a regular income for your family.
Instead of one lump sum, Family Income Benefit pays your family a regular tax-free monthly income if you pass away during the policy term. It helps with everyday bills, childcare and the milestones that matter — and is often one of the most affordable ways to protect a young family.
How it works
Choose the monthly amount your family would need to cover bills, childcare and living costs — often based on your take-home pay.
Usually until your youngest child finishes education or leaves home. The policy only pays for the time left on the term.
If you pass away during the term, a regular tax-free income is paid until the end of the policy.
Who it's for
- Parents with young children
- Families who rely on one or two incomes
- Anyone who would prefer their family receive a regular income rather than a lump sum
- People looking for affordable cover alongside a mortgage policy
What's included
- Regular tax-free monthly income for your family
- Level or index-linked income to help keep pace with inflation
- Single or joint life options
- Optional Critical Illness cover with many insurers
- Terminal illness benefit with most insurers
- Help placing the policy in Trust
Built around the people who rely on you.
Family Income Benefit works best as part of a wider family protection plan. A YPS advisor will look at your income, children's ages, mortgage and existing cover, then recommend a plan that gives your family the support they'd need.
- Income set around your family's real monthly costs
- Can sit alongside Life Insurance and Income Protection
- Comparison across UK insurers
- No fee for our advice — we're paid by the insurer
Should this policy be written in Trust?
Writing Family Income Benefit in Trust means the monthly payments can start reaching your family quickly, without waiting for probate, and can keep them outside your estate. You choose who benefits — and we'll help you set it up at application.
Common questions
Is the income taxed?+
Payments from a personal Family Income Benefit policy are usually paid free of income tax.
Why choose this over a lump sum?+
A regular income can be easier for a family to manage and budget with, and the cover is often cheaper than an equivalent lump-sum policy because the amount payable reduces as the term runs down.
Can the income be paid as a lump sum instead?+
Some insurers allow the remaining payments to be converted into a lump sum on claim. Our advisor will tell you which insurers offer this.
What happens if I outlive the term?+
The policy simply ends and no payout is made. By then, your children will usually be financially independent.
Request a Family Income Benefit quote
A YPS advisor will give you a call to work out the right monthly income and term for your family.
