Pays out until the policy ends
Terminal illness cover
included at no extra cost
From just 17p a day
5 reasons to get Family Income Benefit Life Insurance
- Help secure your family's financial future with a regular income
- Pay less than Level Term Life Insurance as the payout amount decreases over time.
- Responsible for others? Leave money to help them avoid financial hardship
- Fixed monthly payments that never increase
- From £5 a month, that's just 17p a day to protect your family!
Serious Illness Benefit option
Developing a major illness can have a huge impact on your finances, as well as your health. Could you keep paying the bills if you fell seriously ill?
Our Serious Illness Benefit option could help ease the financial burden on you and your loved ones at a difficult time, when you may not be able to work. This insurance is simple and affordable, and pays out while you are covered if you have one of six serious illnesses that meets our definitions and survive for 30 days.
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Looking for a single fixed payout? Pay off the mortgage or protect your family. Our Level Cover can leave an amount for either.
Answers to your questions
What is Family Income Benefit?
Family income benefit is life insurance that pays out differently to traditional life insurance. If you're covered when you pass away, our Family Income Benefit Life Insurance pays out a regular tax-free income to your loved ones until the end of the term. Conventional life insurance pays a single amount of money.
How does it work?
With family income benefit life insurance you're covered for as long as the policy runs. Once the term ends, the cover and any income payments stop.
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.
Why buy it?
With family income benefit the total payout decreases over time, so this insurance is cheaper than an equivalent level term life insurance policy for the same term.
Family income benefit is a cheap and easy way to provide your family with an income, rather than a single amount of money if you pass 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 to pay for specific on-going expenses, such as school or university fees.
Who can apply?
You can apply for our Life Insurance as long as you are aged between 18 and 70, a UK resident and not a member of the Armed Forces, Army Reserve (previously known as the TA) or Reservists.
How much cover can I have?
This depends on the type of life cover you choose. The payout limit is £500,000 for all Level Cover and Decreasing Cover policies. And it’s £2,500 a month for all Family Income Benefit policies, up to a total of £500,000.
Will I need to provide medical information?
You’ll only need to answer a few simple health questions when you apply. We don’t need proof from your doctor, though, and we won’t ask for any. So please be honest and accurate. If you are, you could get cover in minutes. But please be aware that if you aren’t, we might not pay the full claim amount – and we could even cancel your policy outright.
How long do I need to make payments for?
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.
Can I reduce my monthly payments?
Yes, you can reduce the payment at any time to any amount, subject to the minimum of £5 a month for Life Insurance. If you choose to reduce your payment your cover amount will also reduce. If you have Serious Illness Benefit you may not be able to reduce your monthly payments to £5. This is because the cost of Serious Illness Benefit is worked out separately, even though we take both payments at once. Also, we will never increase your monthly payments.
Can I take out additional cover?
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 Life Cover 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.
What if I stop paying?
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.
What if I miss a payment?
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.
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.