When you’ve got a partner, children or dependants who rely on your income, the impact of losing you could be devastating — not just emotionally, but financially too.
Family Income Benefit is a life insurance policy that pays your loved ones a monthly, tax-free income if you pass away. It’s a powerful, practical way to make sure your family can keep up with bills, childcare, rent or mortgage — without needing to budget a big lump sum.
At Mortgage Knight, we help parents and couples across the UK find affordable Family Income Benefit plans that keep life on track, even in the worst-case scenario.
Unlike standard life insurance (which pays out one lump sum), Family Income Benefit pays a monthly amount from the date of death until the end of the policy term.
Example:
You take out a 20-year policy paying £2,000/month.
If you pass away in year 5, your family receives £2,000/month for the remaining 15 years.
Sarah and Liam took out Family Income Benefit for £1,800/month until their youngest turned 21. It gave them peace of mind knowing their children could maintain their lifestyle and education if either parent died.
Ella, a full-time mum, arranged Family Income Benefit in her name, so that if she passed away, her partner could afford help with childcare and household costs. We structured it for £1,200/month for 15 years.
If your income keeps your household running, Family Income Benefit ensures it keeps flowing, even if the unthinkable happens. It’s one of the most practical, affordable ways to protect your loved ones.
Contact Mortgage Knight today, and we’ll help you build a tailored protection plan that matches your needs — and your budget.
A: Traditional life insurance pays a one-time lump sum. Family Income Benefit pays out monthly, like a replacement income, which many families find easier to manage.
A: Yes — you set the amount your family would need to live on. We’ll help calculate a realistic figure based on your outgoings.
A: Typically, until your youngest child is financially independent — often to age 18, 21 or beyond. You choose the term that suits your family plans.
A: Usually, yes. Because the payout reduces the longer you live (fewer years left to pay), premiums tend to be lower than for lump sum policies.
A: Absolutely. Many families pair Family Income Benefit with mortgage protection or critical illness cover to create a complete financial safety net.
A: Like most term insurance, if you survive the full term, the policy ends — but no payout is made. That’s a good thing — it means you lived a long life!
