Life Insurance - Family Income Benefit

A regular income for your family from just £7 a month

If you pass away while covered by our Family Income Benefit Life Insurance, your loved ones can get a regular income for the remainder of the plan term to help protect their financial security.

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Good reasons to buy

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Monthly income

Up to £2,500 a month for the remainder of the policy

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Terminal Illness Cover

Included at no extra cost

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Affordable

From just £7 a month - that's just 23p a day!

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How it works

Family Income Benefit insurance pays out a fixed regular amount of money to your loved ones. The payments start when you die, and continue until the end of the policy. As it’s a regular payment it can be used as an income to help pay bills and maintain your family’s lifestyle. 

For example, if you have a 20 year policy and pass away five years into this, then the policy will pay out a regular income for the remaining 15 years. If you die 16 years into the policy, it will pay out for the remaining four years of the term.

So if you die nearer the end of the term of the policy the total payout will be less than if you died earlier in the term.

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Who is it for?

For young growing families, Family Income Benefit insurance can provide some reassurance, at a reasonable cost.

Also, this insurance pays out an income rather than a sum of money. For many families, a regular income is an easier, more reliable and better way than a one-off payout to help secure their financial future. The money doesn’t need to be invested to produce an on-going income. And an income is easier to manage, making it less likely that it will be frittered away.

If you have a young family, you might want cover until your children grow up. This income could be used to meet everyday expenses or on-going bills, such as school or university fees.

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Four reasons to get Family Income Benefit

  1. Fixed, tax-free, monthly payments - up to £2,500 for the remainder of the policy
  2. Only takes a few minutes to get covered with our easy online application
  3. Your monthly payments to us never increase
  4. From just £7 a month, that's only 23p a day to protect your family!

Important things to know

Our Life Insurance has no cash-in value – it’s a protection policy only.

If you stop making payments, your cover ends and you won’t get anything back.

You can apply if you’re a UK resident aged between 18 and 70 and not a member of the Armed Forces, Territorial Army or reservists. 

Frequently asked questions

If you're covered when you pass away, our Family Income Benefit pays out a regular tax-free income to your loved ones until the end of the term. Level or decreasing life insurance policies pay a single amount of money.

You can apply for our Family Income Benefit as long as you are aged between 18 and 70, a UK resident and not a member of the Armed Forces or reservists.

The payout limit for our Family Income Benefit is £2,500 a month, up to a total of £500,000 across all life insurance policies you have with us.

You’ll only need to answer a few simple health questions when you apply. We don’t need proof from your doctor and we won’t ask for any. So it’s a good idea to be as accurate as you can – if your family need to claim in the future this could save them a lot of heartbreak if the claim was denied.

You specify how long you want the cover to last for when you apply for the policy. The term can be as little as five years or as long as 50 years, but the cover must end by age 80.

If you are eligible and you wish to go ahead, you will be covered straight away.

Yes. A Family Income Benefit policy pays out on diagnosis of an illness that has no cure or cannot be cured and which is expected to lead to death within 12 months.

You’ll need to keep making monthly payments throughout the period of cover, unless you die or a terminal illness diagnosis that meets our definition has been confirmed. You can stop making your payments at any time. If you do, your cover will end and you won't get anything back.

No. We’ll never increase your monthly payments.

Yes, you can reduce the payment at any time to any amount, down to £7 a month. If you choose to reduce your payment your cover amount will also reduce.

Not to worry. Just make sure to pay the full amount within 60 days of the missed payment date and you’ll be fine. If you don’t pay in that time, we’ll have to cancel your policy right after the 60th day. You won’t get a refund, won’t have cover anymore and won’t be able to restart the policy.

If you stop making your monthly payments then your cover will stop. It is worth remembering that you won’t get any money back, as this is a life insurance policy and not a savings plan. So you can’t cash in your cover at any time.

If you cancel your policy within 30 days, we will refund any premiums you have paid. If you cancel your policy at any other time, your cover will stop and you won’t get anything back.

You cannot increase cover under your existing policy; however, you can apply for a new policy. Acceptance is subject to completion of our application process. Any additional policy taken out will be subject to the terms and conditions applicable to that policy at the time it is taken out. Also, your partner can apply for a policy too – as long as they’re eligible for cover.

Your life insurance payout will be made to your estate and settled in accordance with your wishes laid out in your will or as directed by your personal representative(s). If you need more information or advice on making a will you can refer to the Money Advice Service.

Please call us and our trained staff will deal with the claim with kindness and sympathy. Please call our UK-based call centre on our dedicated claims line:

0345 266 5400

Mon to Fri: 8am–7pm. Sat: 9am–5pm. Sun: 10am–4pm.

Or they can post to:

Customer Services
PO Box 409
Royal London House
Alderley Road
Wilmslow
SK9 0EG

To make it easier for your family at a difficult time, please keep your policy documents safe and let your next of kin know where to find them.

We realise that it may be a difficult time when a claim is being made, so we’ll deal with the claim as quickly as we can. Once we’ve received all the information we need, we will make payment within 10 working days.

Prefer to leave your loved ones a fixed amount?

You may be interested in our Level Cover, available from just £7 a month.

Find out more about Level Cover Life Insurance

Serious Illness Benefit option

For an additional monthly cost you could add this extra protection (to Life Insurance) for you and your children over 30 days old. It gives you a financial safety net if you are diagnosed with one of the six illnesses that we define, and survive for 30 days.

If you add Serious Illness Benefit and a claim is paid, this cover ends, but Life Insurance continues.

Find out more about Serious Illness Benefit

Useful info

Making a claim

Important Documents and Guides

Policy summary

Terms and conditions

Got a question?

Call us, we're here to help

0800 085 4201

Free from UK landlines and mobiles

Mon to Fri: 8am-7pm. Sat: 9am-5pm. Sun: 10am-4pm.