Family Income Benefit & Life Insurance
Protect your family and your mortgage with affordable life cover. Family income benefit pays a regular monthly income to your loved ones — providing real wage protection for your mortgage. We compare quotes from a hand-picked panel of Defaqto 4–5 star rated insurers and never charge a fee.
What Is Family Income Benefit?
Family income benefit is a type of life insurance that pays your family a regular tax-free monthly income — rather than a one-off lump sum — from the date of your death until the end of the policy term. It's one of the most affordable forms of life cover available in the UK. Whether you're a first-time buyer or moving home, life cover should be a priority.
For many families, a monthly income is far more practical than a large lump sum. It acts as wage protection for your mortgage, replacing your salary so your partner can continue paying the mortgage, bills, and day-to-day living costs without financial stress. You may also want to consider critical illness cover for protection while you're alive, or income protection if you're unable to work due to illness or injury.
Because the total potential payout reduces over time (the insurer only pays from the date of death to the end of the term), family income benefit is typically 30–50% cheaper than an equivalent level term life insurance policy — making it the most cost-effective way to protect your family. Don't forget to also arrange buildings and contents insurance to protect your home itself.
Family income benefit pays a regular monthly income to your family — easier to manage than a lump sum
Clears your mortgage if you die during the term, so your family keeps the home
Provides wage protection for your mortgage — replacing your income when it's needed most
Family income benefit is typically 30–50% cheaper than standard level term life insurance
Premiums are fixed for the term — they won't increase as you get older
Can be combined with critical illness cover for comprehensive family protection
Policies can be placed in trust to avoid inheritance tax and speed up payout
Types of Life Insurance
Family Income Benefit
Pays a regular tax-free monthly income to your family instead of a lump sum. The most affordable form of life cover — ideal for wage protection for your mortgage and household bills. Typically 30–50% cheaper than level term.
Level Term Life Insurance
Pays a fixed lump sum if you die within the policy term. Choose this if you want a guaranteed amount to clear your mortgage, cover debts, or provide for your family in one payment.
Decreasing Term Life Insurance
The payout reduces over time, matching a repayment mortgage balance. Typically the cheapest option for straightforward mortgage protection.
Whole of Life Insurance
Covers you for your entire life — guaranteed payout whenever you die. Often used for inheritance tax planning, funeral costs, or leaving a legacy.
Wage Protection for Your Mortgage
If you're the main earner in your household, your mortgage depends on your income. Wage protection for your mortgage means ensuring your family can keep making payments if you're no longer around. Family income benefit is one of the most effective ways to achieve this — providing a monthly income that mirrors your salary.
Unlike a lump sum policy, family income benefit gives your family a predictable, regular income they can budget around — just like a wage. Combined with income protection (which covers you if you're alive but too ill to work), it creates a comprehensive safety net for your mortgage and household finances.
Example: Family income benefit quote
A 35-year-old non-smoker could get £2,000/month of family income benefit cover over a 25-year term for as little as £12–£18/month — enough to cover a typical UK mortgage payment. That's often less than half the cost of equivalent level term life insurance.
Family Income Benefit & Life Insurance FAQs
Get a Free Family Income Benefit Quote
Tell us about your needs and our protection specialist will find you the best family income benefit or life insurance deal — 100% fee-free.
Step 2 of 4
A few details about you
This helps us find the right cover at the best price.