Family Income Benefit

A Family Income Benefit policy will provide a regular tax free income in the event of death during the policy term. This income is designed to provide a fixed, regular sum to your family for a fixed term for example until the children complete their education.

Family Income Benefit

Joint or Single Life

The policy can be written on a single life basis, or on a joint life basis whereby the sum assured is payable if either policyholder should die within the policy term. (If the critical illness option is selected the plan will pay out when the first partner suffers a critical illness, based on the conditions within the Key Features Document).

How much will I pay?

The majority of Family Income Benefit Plans are based on a monthly premium, but it is possible to pay annually, or even with a single contribution.

The premium is determined by such factors as your age, sex and general sate of health.

Premiums can be guaranteed, which are fixed for the term of the policy, or reviewable, where the provider can adjust premiums, up or down, at regular reviews dependent upon factors such as their overall claims history. If you do not pay the premiums the cover will lapse.

What will I receive back?

As there is no investment element to this type of policy it will never acquire a surrender or maturity value. The only benefits paid would be on the death of a policyholder.

Waiver of Premium

This option ensures that the insurance company will meet your premiums, should you be unable to work due to an accident or illness for a continuous period of more than 6 months. In addition, waiver may apply if you are unable to carry out certain daily functions i.e. washing, cooking, mobility. The waiver will continue until you are well enough to return to work, attain age 60, or in the event of death, whichever is sooner. Not all policies offer this facility.

Critical Illness

It is possible to include critical illness cover, which will provide a lump sum benefit if you are diagnosed with one of a specified list of illnesses such as heart attack or cancer, and survive a further 28 days. Full details of Critical Illnesses covered can be found in the Key Features Document.

If critical illness is included the sum assured will be payable only on the first of either death or diagnosis.

Conversion Option

You can include a conversion option whereby the policy can be converted into another type of plan with the same cover, at any time within the policy term, without any disclosure of medical information. Not all policies offer this facility


These policies can be written under Trust to ensure the sum assured is paid to your selected beneficiary and/or to mitigate inheritance tax liability.

Pension advice