Family Income Benefit: A Practical Alternative to Traditional Life Insurance
· Posted on: January 12th 2026 · read
Family income benefit (FIB) is a type of life insurance that provides regular monthly payments to your beneficiaries if you pass away during the policy term, ensuring financial stability for your family.
Family income benefit is designed to replace the income lost due to the policyholder's death. Instead of a lump sum payout, which is typical of traditional life insurance, FIB pays out a fixed monthly income to the beneficiaries for the remainder of the policy term.
This can help cover everyday living expenses, such as mortgage payments, bills, and childcare costs, providing a more manageable financial solution during a difficult time.
This type of policy is really useful for families who rely on the income of one or more parents or caregivers to cover everyday living expenses. It provides peace of mind knowing that your loved ones will have some financial support if something were to happen to you.
Here are the key reasons to take out a Family Income Benefit Policy:
- Financial protection for dependents
- Affordable coverage
- Continuous support
- Peace of mind
- Flexibility
- Can be paired with other insurance
Financial protection for dependents
Provides a steady income stream to help your family maintain their standard of living after your death.
Affordable coverage
Compared to traditional life insurance policies, FIB is often more affordable because it pays out a smaller monthly amount over time rather than a large lump sum. This makes it more accessible for people on a budget but still looking for financial protection.
Continuous support
Unlike lump sum life insurance policies that provide a one-time payout, FIB offers ongoing monthly payments. This can be particularly useful for covering regular expenses like rent, bills, and groceries. It’s often easier for families to adjust to monthly payments rather than handling a big lump sum of money.
Peace of mind
Having this type of policy can reduce anxiety about what might happen in the event of death. It provides peace of mind knowing that, even if something unexpected happens, your family will be supported financially.
Flexibility
Family Income Benefit can often be tailored to suit your needs. You can choose how long you want the payments to last (e.g., for a set number of years, until your kids turn 18, or until a certain age). This flexibility makes it a good option for families with different needs.
Can be paired with other insurance
FIB is often taken alongside other insurance policies like life insurance, critical illness insurance, or disability insurance, giving a broader layer of protection. This way, you can make sure that different scenarios (illness, death, injury) are covered.
Who might benefit most from FIB?
Young families
Especially those with children or dependents.
Sole income earners
If someone is the primary breadwinner for their family.
People who want more predictable payouts
Those who prefer monthly payments over a lump sum payout.
For more information
Contact the teamMHA Wealth Disclaimer
MHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (01916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
This is a marketing communication for general information only and is not intended to be individual investment advice, tax or legal advice. The views expressed in this article are those of MHA Wealth, or its staff, and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk. You are therefore recommended to seek professional regulated advice before taking any action.
This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change.
MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at https://www.mha.co.uk/about-mha-group.
