Family Income Benefit
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We all like to assume the worst will never happen; that we’ll never have to deal with serious injury or woe betide, death. To the contrary, it’s our families left to cope with the latter and if you could somehow make this even a little easier, would you? Family Income Benefit offers you the chance. Get in touch to discuss this further with one of our insurance specialists.
At Heron Financial our guidance and advice is available seven days a week, completely free of charge. You pay only for your policy, kept safe in our bespoke, online portal, Everglades. We advise, you decide.
For insurance business we offer products from a choice of insurers.
Family Income Benefit Explained
This policy covers the living costs of your family in the event you should fall seriously ill or pass away. Designed to cover living costs money can be paid either monthly or annually whilst alleviating financial stresses during already difficult circumstances.
Family Income Benefit offers high-value protection against serious injury and/or death, that’s a cold, hard fact. Ensuring loved ones continue to receive a regular income means efforts and emotions can focus elsewhere and upon more important, pressing issues. This policy works well alongside Life Insurance, ideal for paying off an existing mortgage.
We’re Family Income Benefit Experts
It’s easy to become confused with the different types of insurances available. From Family Income Benefit to Critical Illness Cover and Income Protection to Life Insurance, our advisors are here to determine exactly what you need. The process may appear daunting and while you may not wish to think about such eventualities, we’re here to empathise and explain. We’ll talk you through the options, leaving you to make an informed choice.
Avoid becoming a statistic your family may read here; get the right level of cover in place.
How Does Family Income Benefit Work?
Unlike a life insurance policy, Family Income Benefit pays out an ongoing sum of money to you and/or your family. This recurring payment can be used however you see fit, usually covering essential living expenses such as bills and food. Life Insurance is paid in a single lump sum, frequently used to pay the remainder of a mortgage. At Heron Financial we make it our mission to inform you accordingly based upon your requirements and circumstances.
We take notice of our customers, understanding that often, such insurances are those we’d prefer not to discuss. With almost a decade in business we are proud to offer our customers the use of Everglades, a fantastic online portal. This secure software has been designed bespokely over a long period of time and allows you to create a secure profile. Here you’ll have access to policy documents and when combined with video calls, everything can be arranged in a COVID secure manner.
Family Income Benefit Terms
It’s important not to confuse Family Income Benefit with Income Protection. Family Income Benefit is specifically paid should an individual pass away or be diagnosed with a serious illness. In contrast, Income Protection offers a fantastic cushion should you not be able to work for a certain length of time. You can of course, take out both of these policies to run side by side and this is something we will discuss if applicable. Many customers ask about the cost of living with this type of policy. When making the right decision you have the choice for cover to rise with inflation. This option is highly beneficial, especially when paying a premium over a long time period.
For insurance business we offer products from a choice of insurers
FAQs
What is family income benefit and how is it different from life insurance?
Family income benefit (FIB) pays your family a regular monthly or annual income if you die or are diagnosed with a serious illness during the policy term, rather than a single lump sum. Standard life insurance pays one lump sum, which is typically used to clear a mortgage, while FIB is designed to cover ongoing living costs like bills, food and household expenses. The two products often work well alongside each other: life insurance to clear the mortgage, FIB to keep day-to-day finances running.
How does family income benefit actually pay out — monthly, annually or as a lump sum?
As a regular income, either monthly or annually, depending on what you choose at outset. The payments start when you claim and continue for the remainder of the policy term you originally set, so a 20-year FIB policy claimed on in year 5 would pay for the remaining 15 years. The recurring structure is what makes FIB particularly suited to replacing a working parent's income for the years dependants need support.
Is family income benefit the same as income protection?
No, and this is one of the most common mix-ups. Family income benefit pays out if you die or are diagnosed with a serious illness, while income protection pays out if you can't work for medical reasons, regardless of whether the underlying condition is permanent or temporary. The two cover different events and can be held alongside each other for full protection across both eventualities
How much family income benefit should I take out for my family?
Enough to replace the household income your family relies on for the period dependants need support. Most families work backwards from monthly outgoings (mortgage, bills, food, childcare, school fees) and the timeline through which dependants will need that support, often until the youngest child is financially independent. A common approach is to set a monthly figure equivalent to current take-home pay, indexed for inflation, for a term matched to the dependants' independence horizon.
Will my family income benefit cover keep up with inflation?
Yes, if you choose an inflation-linked policy. FIB policies can be set up so the payout rises in line with inflation over the term, which protects the real value of the cover during long policy periods. Without indexation, a £30,000 a year benefit set today could buy noticeably less in 15 or 20 years' time. The trade-off is a slightly higher premium, which most families consider worthwhile on a long-term family-focused policy.
Does Heron Financial arrange family income benefit alongside other protection cover?
Yes. Heron Financial offers products from a choice of insurers and treats family income benefit as part of the wider protection conversation alongside life insurance, critical illness cover and income protection . The team helps clients work out whether FIB on its own, in combination with life cover, or alongside income protection produces the right structure for their household, including whether to add inflation linking. Initial conversations are no-obligation and the firm's advice on insurance is free