Family Income Benefit
What is family income benefit?
Family income benefit is a type of insurance that will provide your family with set income for a period of time after you pass away. Designed to cover living costs money can be paid either monthly or annually whilst alleviating financial stresses during already difficult circumstances. Preparing for the worst eventuality is never the easiest thing to undertake. If you feel that family income benefit is something which you would find beneficial, contact us and we will walk you through all of the policies and tailor it to you and your families needs.
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.
Why Use Prestige Mortgage Solutions?
We’re dedicated to finding the right solution for your needs.
We’ll offer you a no-obligation consultation to discuss your needs
Tailored advice based upon your circumstances and budget
We’ll provide you with a range of options regarding your situation.
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 or childrens nominated guardian. This recurring payment can be used however you see fit, usually covering essential living expenses such as bills and food.
Your wishes on how this policy is used can also be laid out in your Will and placed in trust for your children. Here at Prestige Mortgage Solutions we believe in the full package and we can offer you a referal to our sister company (Prestige Wills and Trusts) to complete your Will
What is family income benefit?
Family income benefit is a type of insurance that provides your family with a set, regular income for a period of time after you pass away. Rather than a single lump sum, payments can be made monthly or annually — designed to cover living costs and alleviate financial stress during already difficult circumstances.
How is family income benefit different from life insurance?
The key difference is how it pays out. A standard life insurance policy pays a one-off lump sum, whereas family income benefit pays an ongoing, recurring income to your family or your children's nominated guardian. This regular payment is typically used for essential living expenses like bills and food, making budgeting simpler for your loved ones at a difficult time.
How long does family income benefit pay out for?
Payments continue from the date of a valid claim until the end of your chosen policy term. For example, if you take out a 20-year policy and pass away in year 8, your family would receive the income for the remaining 12 years. Many parents set the term to line up with when their children will be financially independent — we'll help you choose the right term for your family.
Is family income benefit cheaper than standard life insurance?
Generally, yes. Because the potential total payout reduces as the policy term goes on, premiums for family income benefit are often lower than for a lump-sum life insurance policy with equivalent cover. That makes it a cost-effective way for families to secure meaningful, long-term protection on a budget.
Can family income benefit work alongside other insurance policies?
Absolutely — it works especially well alongside life insurance, where the lump sum can pay off an existing mortgage while the family income benefit covers ongoing living expenses. Your wishes on how the policy is used can also be laid out in your Will and placed in trust for your children. Through our sister company, Prestige Wills and Trusts, we can refer you to complete your Will as part of the full package.
Who should consider family income benefit?
It's ideal for parents with young children or anyone whose loved ones rely on their regular income — especially the main household earner. Ensuring your family continues to receive a steady income means their efforts and emotions can focus on more important things. We offer a free, no-obligation consultation and will tailor the policy to your family's needs. As with all insurance policies, conditions and exclusions will apply.