Family Income Benefit:


Protecting your client and their family

You’ve probably set up life insurance for many of your clients to cover those larger financial liabilities like a mortgage. That lump sum payment may be vital to keep a roof over their heads. But a family will still struggle to meet day-to-day living costs even if the mortgage has been paid off.

Family Income Benefit is an affordable way to plug this protection gap for your client.

It’s designed to pay out a tax-free monthly income until the end of the term, on the death of the life assured or diagnosis of a terminal illness. It’s available as part of our Flexible Protection Plan – either on its own, or combined with other policies. As a menu plan, our Flexible Protection Plan allows you to mix and match different types of insurance options for your clients.

The main features of Family Income Benefit include:

  • Pays a convenient monthly income which can be converted at any time during a claim to a reduced lump sum.
  • Premiums are guaranteed throughout the term – no reviews, and the minimum premium is £5 per month.
  • Inflation-linked cover is available, maintaining the buying value of the income in the longer term.
  • Terminal illness benefit is included as standard throughout the term.
  • Guaranteed Increase Options are available.
  • Includes ‘Pay My Mortgage’ facility which enables the beneficiaries of the policy, depending on their individual circumstances at the time of claiming, to have all or some of their monthly income paid directly to their lender to cover their regular mortgage payment.

Product profile

Our Family Income Benefit helps to replace your client’s income if they die or become terminally ill. Details on what’s covered, eligibility, costs and key information can be found in the product profile:Waiver of Premium product profile

Important information

Here are some important things you should know about our Family Income Benefit cover:
  • If your client chooses level cover, it won't keep up with inflation and could buy less in the future.
  • If your client stops paying their premiums, cover may cease.
  • There is no cash in value at any time.
  • We won’t pay a claim if your client dies as a result of intentionally taking their own life within the first 12 months of their policy.

Here’s how you can position Family Income Benefit for your client:

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Day-to-day bills

Bills like childcare or utilities will still need to be paid if the main earner or homemaker dies. Younger families are particularly vulnerable. Family Income Benefit can ease the financial burden.

For renters

1 in 5 people rent the property they live in, and for many this is a longer-term option. Renters still need the right cover in place should their partner or spouse dies. If this happens, Family Income Benefit can help pay rent and bills.
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Divorce maintenance payments

If one of the divorce partners dies, maintenance payments could be at risk. A Family Income Benefit monthly income payment ensures children are brought up securely, without any financial worries.
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Future prospects for children

If the worst happens in a single parent family, the future prospects for children can be greatly improved with a monthly income payment. It’s payable to the guardian who supports the child as they grow.
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Education fees

Parents always want the best for their children, and the monthly income payment could make all the difference in maintaining a child’s education on the death of your client.
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The cost of care

If your client is a full-time carer for their loved one, and they’re suddenly no longer around, the monthly income can continue to fund home care or other care costs.

Family Income Benefit cover options

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Level cover

Your client’s annual amount of cover, and the premium they pay, is fixed when the plan starts and won’t change. Cover won’t keep up with inflation and will buy less in the future.
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Inflation-linked cover

The amount of cover will go up in line with inflation (RPI), and the premium will go up by RPI x 1.5. If we're paying a claim the maximum annual increase is limited to 12%.
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Guaranteed premiums

Family Income Benefit cover only supports guaranteed premiums. This means your client’s premiums are fixed and won’t change unless it’s inflation-linked cover. With inflation-linked cover both the premium and annual amount of cover will only increase by the rate of inflation each year.
10% uplift with Fastway Fastway is your solution to quick and easy applications. Supported by intelligent online underwriting – you’ll see the benefit of our online quote and apply system. Plus you’ll get a 10% uplift on top of your agreed commission levels.

Flexible protection

Family Income Benefit is part of our Flexible Protection Plan - it can be applied for on its own or along with other policies in our menu plan. Adding more than one cover to a plan can make it more cost-effective as we’ll offer a small discount.

Choosing us for Family Income Benefit

We know that being a respected provider isn’t just about the right product – but also about offering the right support. We place you and your clients at the heart of all we do:

  • Strong claims performance.  We’re proud of our claims performance, approving 95%* of all protection claims in 2020. That means you’re recommending a provider that pays out when your client really needs it. * Includes claims already in payment in 2020 for Income Protection and Personal Sick Pay.
  • Guaranteed increase options. Your client can increase their cover without medical underwriting within certain limits - so if they change jobs, have or adopt a child, or get married/enter a civil partnership, their cover can change too.
  • Member benefits. With Family Income Benefit, your client can agree to become a member – they’ll be entitled to a fantastic range of benefits and support. 
  • Better underwriting. We support you in providing the best financial advice to your clients. That’s why we offer strong underwriting - online for an instant decision, flexible medical arrangements, covering the cost of medical underwriting and a dedicated underwriting phone line.
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LV= Doctor Services

We’re here for your clients when they need us most. Your clients and their spouse/partner have access to 6 expert medical advice services through LV= Doctor Services – all accessible by app or phone:

  • 24/7 Remote GP. Unlimited consultations with a UK doctor available by phone or video.
  • Discounted health MOTs. Your client can get 25% off health assessments – identifying risks and areas for improvement.
  • Prescription services. Get a private prescription without the need for your client to visit their local GP.
  • Second opinion. Your client can check a diagnosis and get advice on treatment options with a UK medical specialist.
  • Remote physiotherapy. UK physiotherapists are on hand to offer a bespoke treatment plan via video consultations. Members get free sessions.
  • Remote psychological support. With free sessions, your client can benefit from mental health support - including counselling and Cognitive Behavioural Therapy. 
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Member benefits

With Family Income Benefit, your client agrees to become a member, meaning they're entitled to exclusive benefits and support at no extra cost:

  • Member Care Line. When your client needs peace of mind, the Care Line offers access to confidential legal advice, trained nurses and qualified counsellors.
  • Member Support Fund. If your client falls on hard times they can request financial assistance. 
  • Generous discounts. Your client will be entitled to discounts on general insurance products provided by LV= General Insurance Group – like car, home and pet insurance. 
  • Members right to vote. Your client will be invited to attend our AGM – so they can have a say in our annual general meetings.

Learn more about the benefits available to members

We paid 95%* of all claims

We offer a clear and fair approach to paying claims – and believe anyone can be affected by terminal illness, regardless of age or lifestyle.

We’re proud to have paid 99%** of Life Protection claims in 2020. A successful claim is as important to your client as it is to you - your clients get vital financial help when they need it most and you feel confident in the provider you recommended.

* Includes claims already in payment in 2020 for Income Protection and Personal Sick Pay.

**Our Life Insurance figures include claims paid for our Life Insurance, Terminal illness, and whole of life products. Our whole of life products are no longer available.


View our full 2020 claims performance.


Dedicated support for you

Fastway - our quote and apply system – makes it easier to protect clients. It’s a fast and flexible application journey and gives you an immediate underwriting decision. 

Our UK-based team collect accurate information, reducing the risk of non-disclosure and taking the worry and responsibility away from you. Avoid long delays with GP reports - so your client could be underwritten and accepted quicker.

Learn more about Fastway.

Contact Phone

Let's talk

0800 678 1890

9am - 5pm Mon-Fri

TextDirect: first dial 18001. We will record or monitor calls for training and audit purposes.