Family Income Benefit

Family Income Benefit works differently to traditional life cover. Instead of one lump sum, this pays your family a regular, budget-friendly income for the rest of the policy term if you die — often a more practical and cost-effective way to protect younger families who need ongoing support rather than a single payment to manage.

How Family Income Benefit works

You choose a monthly or annual income amount and a policy term — often timed to run until your youngest child becomes financially independent. If you die during that term, your family receives that income for the remainder of the term, rather than managing a single lump sum and the investment decisions that can come with it.

Family Income Benefit vs level term life insurance

Because the benefit decreases in total value the further through the term a claim occurs (there's simply less time left to pay the income), Family Income Benefit policies are typically more affordable than an equivalent level term life insurance policy. For families who want ongoing support rather than a lump sum to manage, this can mean significantly more affordable cover for the same practical outcome.

Who Family Income Benefit suits well

• Parents with young or school-age children who need ongoing financial support
• Families who want simplicity over managing a lump sum and investment decisions
• Those looking for the most cost-effective way to replace an income for a defined period
• Single-income households where one parent's earnings are essential to day-to-day life

Why arrange Family Income Benefit through TLD

• Honest, in-person advice — we explain how this compares to other types of cover so you choose what's right
• Access to leading UK insurers, to help find cover that fits your needs and budget
• 12,800+ plans arranged and £1.07bn+ in cover placed since 2015
• Named Stockport's Three Best Rated Insurance Services, 2022 to 2026
• Trusts at no extra cost — so the income reaches your family quickly and outside your estate