Family Income Benefit (FIB) is a type of life insurance that pays your beneficiaries a regular monthly income for the remainder of the policy term, rather than a single lump sum.
For example, if you have a 20-year policy that pays £2,000 per month and you die 5 years into the policy, your family would receive £2,000 every month for the remaining 15 years.
Select the monthly income your family would need (e.g., £2,000/month)
Choose how long you want the coverage (usually 10-30 years)
If you die, payments continue monthly until the original end date
20-year policy paying £2,000/month. If you die in year 8, your family receives £2,000 monthly for the remaining 12 years (total: £288,000).
Understanding the differences to choose what's right for you
Monthly income payments
Regular monthly income for remaining policy term
£2,000/month for 20 years
Age 30: £20-30/month
Age 40: £35-50/month
Single lump sum payment
One-time lump sum payment upon death
£400,000 lump sum for 20 years
Age 30: £25-35/month
Age 40: £45-65/month
This type of cover works particularly well for certain situations
Families with young children who need to replace the main breadwinner's income for many years while children grow up and become independent.
Ideal scenario:
Parent earning £40,000 annually with children aged 5 and 8
Families where one person works and the other cares for children or family members. The working partner's income is crucial for maintaining the household.
Ideal scenario:
One partner works, other is stay-at-home parent or carer
Those who want substantial protection but need to keep insurance costs low. FIB typically costs 20-40% less than equivalent term life cover.
Ideal scenario:
Need protection but want to minimise monthly expenses
See how FIB could work for different family situations
Situation: Mark (32) and Sarah (30) with children aged 4 and 7
Mark's salary: £45,000 annually (£3,750 monthly)
Sarah: Part-time work (£800 monthly)
Monthly expenses: £3,200
Policy needed: £2,500 monthly for 20 years
Situation: Emma (28) single mother with two children aged 3 and 6
Emma's salary: £35,000 annually (£2,917 monthly)
Monthly expenses: £2,400
Support needed: Until youngest child turns 18 (15 years)
Policy needed: £2,000 monthly for 15 years
Calculate what your family would need to maintain their lifestyle
Tip: Add 10-20% buffer for inflation and unexpected expenses. Remember, you can always get additional cover later if needed.