Ease the burden of bills and budgeting with Family Income Benefit

Unlike most life insurance policies, Family Income Benefit can give you and your loved ones monthly financial support when you need it most.

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It’s more than likely that you will have set up a life insurance policy to cover the big bills such as a mortgage; that lump sum payment, should you pass away, could be the difference between keeping a roof over your family’s heads, or not. But what happens when the mortgage has been paid off and daily living costs also need to be met?


The benefits of Family Income Benefit:


  • A regular monthly income is paid with the flexibility to move to a reduced lump sum if needed.
  • Terminal illness benefit is included as standard throughout the term.
  • Your loved ones will have access to a tax-free monthly income until the end of the term, upon death or diagnosis of a terminal illness for the life assured.
  • Premiums are guaranteed throughout the term of the policy with a minimum premium as little as £5 per month.
  • Family Income Benefit can often be combined with different types of insurance products for additional cover.
  • You can maintain the long-term buying value of the income by choosing to have inflation-linked cover and guaranteed increase options are also available.
  • You can include a ‘Pay My Mortgage’ facility which enables the beneficiaries of the policy to have all or some of their monthly income paid directly to their mortgage lender, depending on their circumstances.

As a type of life insurance product, Family Income Benefit can provide regular financial support to your family at the most difficult of times, and can be a good financial protection solution in certain circumstances:

Protecting your young family:

Should one parent die or receive a terminal illness diagnosis, a Family Income Benefit policy can help ease financial stress. The regular monthly payments can help with household bills, food shopping or education/childcare fees.

Protecting your children if you are a single parent:

Again, in the event of death or a terminal diagnosis, you can help secure your child’s immediate financial future with Family Income Benefit. This can help the person you have appointed as legal guardian to manage monthly expenses such as school costs, clothing and food and provide them with a regular income when you are no longer able to care for your child.

Continuity of care:

If you are the full time carer of a family member or loved one, then they no doubt rely heavily on the care you provide. If you are no longer able to provide that level of care, having Family Income Benefit in place means the money could be used for providing alternative support at home or help with care home fees.

Renting your home:

If you rent rather than own, you still need the right cover in place should your partner or spouse die. If this happens, Family Income Benefit can help pay rent and bills and allow you to stay in your home.

Things to note:

By choosing level cover, your policy won’t keep up with

  • If you stop paying your premiums, cover may cease.
  • There is no cash-in value at any time.
  • Claims may not be paid for the first 12 months should the policyholder take their own life.

Family Income Benefit may not be right for everyone. Your eligibility for cover will depend on your personal circumstances. That’s why it’s important to speak to an adviser so they can understand your situation and determine if this type of cover is right for you.


Get free, no obligation advice today!

If you think that you and your loved ones could benefit from Family Income Benefit, our friendly team at Downton Mortgages and Financial Services is available to provide you with the advice you need to protect your family’s financial future.


Please note for these insurance products, terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.

The information contained within was correct at the time of publication but is subject to change.