What is family income benefit?
Family income benefit is a type of term life insurance that pays a regular monthly or annual income, rather than a single lump sum, from the date of death until the end of the policy term. It is often used to replace lost earnings while children are growing up, and can be cheaper than an equivalent lump-sum policy.
How the payments work
If you die early in the term, payments continue for many years. If you die near the end, they run for a shorter time.
Why people choose it
Regular payments can be easier to budget with than a large lump sum.
Inflation
Some policies increase the income each year to keep pace with prices.
This article is general information about UK protection insurance, not personalised financial advice. Policy terms vary between insurers and products, so always check your own policy documents.
Last updated 27 October 2026