Pays out until the policy ends
Terminal illness cover
included at no extra cost
From just 17p a day
Losing a breadwinner
Most of us work to live, earning money to pay the bills and providing a standard of living. If you pass away, your income is lost and the lifestyle your family enjoy could be at risk. Take out our Family Income Benefit Life Insurance and you can replace your income to help protect the financial security of your family.
5 reasons to get Family Income Benefit Life Insurance
- Secure your family's lifestyle with a regular income
- Pay less than Level Term Life Insurance
- 5 star Defaqto rating for cover, features and benefits
- Fixed monthly payments that never increase
- From just 17p a day to protect your family!
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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.
How much cover do I need?
If it's to provide your family with an everyday income, work out how much money they're likely to need each month and base it on this. If the cover is for the main income earner in your household, their income may need to be replaced. If it's the main carer being covered, estimate how much you might need to pay someone to do everything they do.
Don't forget that prices rise over time so you'll need to factor this in when deciding on the amount of income needed. You may also have other life insurance which will pay out in the event of a death.
How much does it cost?
Monthly payments are based on the amount of cover and how long you want it for, your health, lifestyle (such as whether you smoke or not) and your age.
Should I buy it?
Family income benefit is worth considering if, in addition to paying off your debts, you want to make sure your family receives an income for a given time should you or your partner die. It's easy to decide how much cover you might need and for how long, and is usually quite inexpensive, especially if you take it out while you are still relatively young.
Important things to know
We won’t pay a claim on death if it was as a result of suicide or intentional self-inflicted injury within 12 months of the start date of your policy.
We won’t pay a claim on terminal illness if you don’t meet our definition of terminal illness; or terminal illness is caused by intentional self-inflicted injury within 12 months of the start date of your policy.
We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. Or if you don’t tell us something or give us incorrect details which would have affected your cover. If you’re a UK resident aged between 18 and 70, excluding members of the Armed Forces, you can apply.
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.