What is Family Income Benefit?

Family income benefit is another type of life insurance for those who are looking for their loved ones to receive a steady income rather than one lump sum.

Family income benefit is another type of life insurance designed to pay regular instalments if you were to die. In comparison to the usual lump sum you would receive from a life insurance policy, it’s easier to manage and budget, especially for something as important as childcare.

This type of protection is for those who are looking for their loved ones to receive a steady income rather than one lump sum.

Types of benefits

  • Guaranteed premiums: these will never change. You agree on a price when you take out the policy and it remains the same throughout the course of your cover.
  • Reviewable premiums: are reviewed on a regular basis by the insurer and could be increased. It could perhaps become unaffordable at some point even if it started as the cheaper option.
  • Joint cover: this isn't something we would usually suggest though, just in the same way as we wouldn’t recommend joint life insurance.

Some benefits

The main benefit of family income benefit is that it is given in convenient, monthly or even yearly payments, depending on your policy. This is to mimic the regular income of the person who has passed away. It’s important to bear in mind that there is no lump sum with this benefit, so large bills or debts cannot be paid off right away. Examples of this could be a mortgage or large credit card debt.

Over the course of the policy, the payout will decrease. If you died in the last year of the policy, your loved ones would only receive a few thousand. So, if your cover was for 20 years and you passed away after 19 years, they would receive 1/20 of the amount.

The cost

The cost is determined by the common reasons such as age, health, length of the term and the amount of the income you’re looking for. These each carry some weight in determining the price you would be paying monthly or yearly.


Family income benefit is similar to that of decreasing term life cover as the total you receive decreases as the years go by. If you’re looking for the highest level of coverage, this might not be the best choice for you.

We don’t currently offer family income benefit but will let you know if we do in the future. We do, however, offer some other options to help take care of your loved ones. You could purchase a term life insurance policy with us, which would be either level or decreasing. It’s not always easy to figure out how much life insurance cover you might need, but feel free to reach out and we would be happy to help.


Jessica Clancy - Customer Experience - Bequest

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FF Bequest Limited, trading as Bequest, is authorised and regulated by the Financial Conduct Authority with firm reference number 923791. You can check our authorisation on the FCA Financial Services Register by visiting the following website: register.fca.org.uk . We are registered in England and Wales, Registered office address: Founders Factory, Northcliffe House, London, United Kingdom, W8 5EH. Company Number 12367897.

Regulated by the Information Commissioner's Office (ICO) [ZA662891]. “Bequest" is trademark protected by FF Bequest Limited (UK00003452648). FF Bequest Limited is registered in England and Wales, No 12367897.

0203 916 5433

FF Bequest Limited, trading as Bequest, is authorised and regulated by the Financial Conduct Authority with firm reference number 923791. You can check our authorisation on the FCA Financial Services Register by visiting the following website: register.fca.org.uk . We are registered in England and Wales, Registered office address: Founders Factory, Northcliffe House, London, United Kingdom, W8 5EH. Company Number 12367897.

Regulated by the Information Commissioner's Office (ICO) [ZA662891]. “Bequest" is trademark protected by FF Bequest Limited (UK00003452648). FF Bequest Limited is registered in England and Wales, No 12367897.

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