Family Income Benefit

Family Income Benefit is a type of decreasing term, you decide on how long you would like the cover for, quite often the cover is taken through until either your youngest child reaches either 18 or 21 years old and no longer dependant, until retirement, or for the length of time you feel that you would want the cover for. You would choose a monthly amount needed should you or a partner die, usually enough to cover bills and possibly the mortgage and some extra costs if required. On death the cover would pay that amount out on a regular basis until the end of the chosen term. So for example if someone took a policy £1,500 per month over 21 years and died after 10 years, the policy would pay the £1,500 per month over the remaining 11 years, you can also have this amount increasing to offset inflation and the cost of things increasing.

Again as per Level and Decreasing cover the monthly premiums are usually guaranteed, so will not increase for the whole term of the policy.