Family Income Benefit by Polly.co.uk

Family Income Benefit

Family Income Benefit is a life insurance product that can provide financial support and relief to your family in the event of your death or potentially if you are diagnosed with a terminal illness. The policy can help to secure your families on-going financial stability by providing monthly payouts that can help make managing a budget easier and reduce the burden on them for costs such as bills. In the event that circumstances change, there is the option to switch from a monthly payment to a lump-sum payout during a claim

Key Features

  • Provide a tax-free monthly income to support your family when you die.
  • You control your term length: from 3 to 50 years.
  • Many insurers offer critical illness cover as part of your policy
  • You payouts will last the duration of your policy term length.
  • You should note, if you out live your policy, there’s no payout and you won’t get your money back
  • Here are Polly we can help you find and compare the best Family Income Benefit to suit your needs.
  • Get a quick no-obligation quote today


Benefits of Family Income Benefit through Polly.co.uk

  • Compare all leading UK Insurers to find you the best deal for your circumstances with a whole of market search.
  • It is completely free to get a quote through us
  • In most cases you can find a better rate versus going directly to all insurers.
  • Get covered from today
  • Earn peace of mind knowing your family will be protected should the worst happen to you.


Frequently Asked Questions

Family Income Benefit is a version of a life insurance product that will provide a regular income for your family upon your death.

Unlike a typical life insurance policy that will pay out a lump-sum payment upon your death that your family will have to decide how to manage, the family income benefit product will provide a monthly payment that can help your family to maintain a similar standard of living even after you’re gone.

This product can be useful to help your family keep up with their financial commitments such as bills over a period of time defined by you.

Working on the example that you take out a family income benefit policy over a 30 year term and pass away 10 years into the term, the policy will provide payouts for the remaining 20 years of your policy to cover your income.

You can decide how much monthly income you would like to provide and the term in which you would like to cover your family – the higher the payouts and the longer the term will likely increase the monthly premiums that you will pay for the policy.

For some insurers there is the option for the family income benefit to be requested as a lump-sum rather than a monthly payment when a claim is being made on the policy.

It is not a universal option that is available on all policies so it is worth discussing this with your protection advisor if you feel this is something that you may want to provide as an option to your family.

If you are more concerned about providing a lump-sum payment rather than a regular monthly payout, you may find that a traditional life insurance policy better serves your needs.

As family income benefit is different to a traditional life insurance policy in that it pays out as a regular monthly payment rather than a lump-sum that is included in your estate upon your death, it is not affected by inheritance tax.

For clarity, not all lump-sum life insurance payments are taxed as there are options to write your policy in trust which can provide this benefit to.

If you want further clarity on whether your policy will be taxed, feel free to raise the question with one of our protection advisors.

In short, yes. There is the option to have all life insurance policies written into trust which will put them outside of your estate upon your death.

The main benefit here is that your family can receive the money quicker as it will fall outside of the probate process.

What you will pay for your policy will vary depending on several factors including: your health, lifestyle, age, monthly income required and number of years you want the policy to last.

With this in mind it is difficult to provide a one-size-fits-all guide to price, however, as you have the ability to control the size of the monthly payments and term length you will in most cases be able to create a policy that works around your current budget.

In many cases, family income benefit can be more affordable than a typical life insurance policy as there is less risk involved for the insurers as the final payment can often be lower and the cost is spread out over time rather than paid in one go.

You can speak to a protection advisor here at Polly.co.uk and get yourself a no-obligation quote for what it would cost to protect your family.

As the name suggests it is a product that is well suited for parents with young children as it can provide a regular source of income to cover the cost of raising the child to a point when they can become financially independent as well as providing them with a comfortable childhood.

As the product is designed to deliver regular monthly payouts rather than a lump-sum payment it can be a great option for families as it removes the need for them to manage a larger sum of money in one go and can instead manage their budget knowing they have this source of income over a fixed period of time to cover things like household bills which can reduce the stress involved in the transition after losing a loved one.

Yes, Family Income Benefit is a product that is available on a joint basis so you could get a policy that covers you and your partner.

A joint policy will generally start paying out when the first policyholder passes away inside the term of the policy – so there will only be one payout instead of two.

You can of course take out two individual policies to provide two sets of payouts – this may work out more expensive but provides the option of having two sets of income payments.

If you are unsure of the best option for your circumstances, this is where one of our protection advisors can provide assistance.

There are two potential disadvantages to family income benefit. Firstly, this is not a savings/investment product, so if there is no claim made during the agreed policy term length then there will be no payout available at the end.

Secondly, it provides what is known as a decreasing level of cover, in that over time the amount you can receive back decreases as you progress through the policy term. As an example, if you were to pass away 6 months before the end of your agreed term, it would only pay out for 6 months.

If this does not sound like the right cover for you, one of our protection advisors can help you compare the products available to you so you get the best cover for you.

If you are considering the best options for protecting your family, there are other products in the market that may be more suitable to your needs.

These include Life Insurance (Decreasing Term or Level Term), Critical Illness Cover or Income Protection Insurance. All of these products can provide cover for a range of different scenarios.

To ensure you get the cover that is right for you, we recommend taking some time to speak with a protection advisor who is experienced in assessing your needs and providing recommendations to ensure your family will be best protected should the worst happen to you.

Why Use Polly.co.uk

Since our launch in 2015, we have helped over 500,000 UK mums towards protecting their family with affordable life insurance and protection products. Every 22 minutes, a child loses a parent they depend on financially, but despite this over 12% of UK Mums still have no life insurance to protect their family if the worst happened.

It was clear there was a problem, yet no-one was talking about it, so we launched Polly.co.uk.

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