What Is Family Income Benefit?
- MRG
- Sep 16
- 3 min read
Life is full of uncertainties. While we strive for stability, none of us can predict what lies ahead. That’s why arranging protection for your family isn’t just good sense—it’s essential.
At MRG Private Clients, we know how important it is that those who depend on you are looked after, no matter what. Family Income Benefit provides a dependable, ongoing financial lifeline for your loved ones when you’re no longer around.
Why Family Income Benefit Is Different
You’re probably familiar with standard life insurance, where a lump‐sum payment is made when someone dies. Family Income Benefit works differently—and often more effectively for households where regular income matters. Instead of one large payment, this kind of policy delivers monthly, tax-free payments for a set term to help cover everyday costs, maintain routine, and keep things on track.
Key Benefits at a Glance
Regular, predictable income rather than a single lump sum - this helps your family manage household bills, childcare, ongoing living costs—without worrying about investing or budgeting a big payout all at once.
Lower premiums compared with equivalent lump-sum life policies - because over time the insurer’s exposure decreases (once you get nearer to the end of the term), the costs tend to be more affordable, making it more accessible for many families.
Upholds your family’s standard of living - ensures minimal disruption during an already difficult time—helping pay for mortgage, schooling, utilities, food, etc.
Flexible and inflation-protected options -many policies allow you to link payments to inflation so that the real value of what your loved ones receive doesn’t erode over time. There are sometimes add-on options like cover for critical illness, or waiving premiums if you become unable to work.
How It Works — What You Need to Decide
When setting up a Family Income Benefit policy, there are a few decisions to make:
Policy Term
How long will your dependents need this income? It might be until children are financially independent, or until major debts like your mortgage are fully cleared.
Monthly Benefit Amount
Think through what your family’s ongoing expenses are: living costs, childcare, schooling, outstanding debts, etc. The sum should reflect the income you contribute to day-to-day life.
Extras / Optional Features
Inflation linkage: to make sure payments keep pace with rising costs.
Critical illness cover: payments if serious illness strikes.
Waiver of premium: your premiums are covered if you can’t work due to illness.
Who It’s Especially Good For
This kind of cover can be especially valuable for:
Families with young children, where ongoing costs are high.
Parents who are the main breadwinner—ensuring income continues if they pass away.
Households with non-earning parents (e.g. stay-at-home), whose unpaid contributions (childcare, domestic work) have value that’s often overlooked.
Anyone who’d prefer a steady stream of payments rather than a lump sum that must be managed in one go.
How It Fits In With Other Protection
Family Income Benefit isn't necessarily an either/or. In many cases, it works well alongside other insurance:
Lump-sum life cover can help clear mortgages, pay funeral costs, or settle immediate large expenses.
Income Benefit protections (like Family Income Benefit) help cover ongoing living expenses.
You might also have Critical Illness Cover or Income Protection in place. Reviewing your overall protection plan ensures there are no gaps or overlaps, and that your cover matches your current situation.
When to Review
Circumstances change—and your protection needs should, too. Think about reviewing your policy if:
You have more children.
Your income changes (up or down).
Your mortgage or debts increase or reduce.
Your partner’s working situation changes.
A regular review ensures your loved ones are always safeguarded based on what your family actually needs today—and what it likely will need tomorrow.
Is It Right for You?
If you’re considering how best to protect your family financially, Family Income Benefit from MRG Private Clients may be exactly what you need. It provides peace of mind through steady income rather than a single payout, is typically more affordable for many households, and can be tailored to your situation.
Want to explore what this looks like for your family? Whether you’re curious about premium costs, term options, or combining with other cover, MRG Private Clients are here to help. Reach out for a family protection review—let’s make sure your loved ones are secure.
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At MRG Private Clients, we believe in providing our clients with personalised guidance and support when it comes to making important financial decisions. We are based in Medway, Kent but offer our specialist mortgage services nationwide. Learn more about our specialist mortgage services >
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