Family Income Protection

The basics

Family Income Protection (otherwise known as Family Income Benefit Insurance) is a type of Life Insurance, the only difference being that the benefit is paid out on a monthly basis. The purpose of the policy is to provide an income to loved ones should the insured pass away. This policy is often taken out in conjunction with a standard life insurance policy because the benefits of it will be used for different purposes.  

In the event of the insured passing away any subsequent claim against the life insurance would provide a lump sum (the amount having been specified by the applicant at point of taking out the policy). The recipient will often have immediate financial responsibilities such as funeral costs or an outstanding mortgage to clear. Due to the circumstances by which this money has been received it is also not uncommon for the money to be used for holidays or other significant purchases and there is a risk of the money being spent quicker than anticipated.

This is where the Family Income Benefit Insurance would have its place. It would continue to provide financial support in smaller, more manageable amounts which would often be used more practically to cover the essential costs of living. Policies are available until age 90 (on next birthday) however, the term of the policy is often arranged so it expires once the insured expects their children to be financially independent. This makes the policy as cost effective as possible while children are still financially dependent.    

How does it work

The cost of Family Income Benefit Insurance is often comparatively low in comparison to Life Insurance. Policies will pay out the agreed monthly sum for the length of the policy, so should a claim be paid close to the start date of the policy the total pay-out will be considerably higher than if a claim is made towards the end of the term. 

Should you wish to review your Family Income Benefit policy or would like to discuss any new protection needs please call Periscope Wealth’s Wealth Protection team on
0161 4166672. We are more than happy to conduct a no obligation review of your cover and circumstances to ensure you have in place the cover you need when you need it.


Why undertake your pension review with Periscope Wealth?

  • We are authorised and regulated by the FCA which provides you with protection.

  • We'll check the health of your current pension when we review it and only advise to switch if it benefits you.

  • We will provide you with regular communication, not just a statement and a letter once a year.

  • We are committed to the highest standards of client care.

  • All our pension reviews are fully transparent, free and have no obligation to proceed.

  • We provide tailored advice based on your personal circumstances.

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