Family Income Benefit

This is, for all intents and purposes, life assurance. It will be taken out for a specific term, but rather than provide a lump sum on the death of the life assured, it will provide a monthly income.

At the start of the policy, you would will decide how much you want it to pay out (e.g. £1,000 per month) and when you want it to expire (e.g. at your age 65, or when your eldest child has reached 21). A monthly income can in many ways can be more useful in the event of the death of a loved one, as it is easier to calculate the monthly financial burden of that person’s death, rather than trying to work out a lump sum.

The income could be used to replace the life assured’s salary, employ child care to allow the surviving spouse to remain working etc.