A family income benefit is a life insurance feature that pays beneficiaries a regular income for a defined period after the insured's death, rather than a single lump sum. It can be a standalone term policy or a rider that converts the death benefit into monthly payments. The design matches ongoing household expenses, creating paycheck-like cash flow for dependents during a transition period.

Advisors recommend family income benefit riders to create paycheck-like cash flow for survivors. They model duration and monthly amount to cover mortgages and childcare. Clients who prefer a lump sum can still elect commutation options. Clear illustrations prevent confusion about how the death benefit will be paid.