🛡️ Case Study: Divorced Dad Secures Family Income Benefit to Protect His Children’s Future

Client Profile

  • Name: Mark, aged 42

  • Occupation: Graphic designer

  • Family Situation: Divorced with two young children (ages 6 and 9) who live primarily with their mother, Emma

  • Living Arrangement: Mark lives separately but sees the children regularly and contributes financially through informal support

The Problem

Mark was concerned about what would happen to his children if he were no longer around to support them. He knew Emma would still be responsible for their care, but without his income, things could become financially strained—especially with growing costs like school trips, childcare, and clothing.

Although divorced, Mark wanted to make sure that Emma and the kids wouldn’t suffer financially if he passed away unexpectedly. He didn’t want to leave a lump sum that could be difficult to manage, but he did want a plan that would replace the financial support he currently provides.

The Solution

We recommended a Family Income Benefit (FIB) policy—a type of life insurance that pays out a monthly income rather than a one-off lump sum if the policyholder dies during the term.

We arranged a 15-year policy (to cover the children until adulthood), with a monthly payout of £1,200, paid tax-free directly to Emma if Mark were to pass away. The policy was written into trust with Emma as the nominated beneficiary, ensuring quick and clear access to the funds.

This solution provided:

  • Financial security for the children without a complex estate process

  • Ongoing support to help cover living costs, school needs, and extracurriculars

  • Peace of mind for both parents, despite their separation

New Policy Secured

  • Family Income Benefit policy

  • £1,200 monthly benefit

  • 15-year term

  • Written into trust to ensure the benefit goes directly to the children’s carer

The Result

Mark now has confidence that, should the worst happen, his children will continue to receive regular financial support through their mother. Emma also felt reassured knowing there would be no extra financial burden if she became the sole carer.

This setup allowed both parents to move forward independently while still prioritising the well-being of their children—exactly the kind of smart, cooperative planning that family protection is all about.

How J Finance Helped

  • We took the time to understand Mark’s personal situation and goals

  • Advised on the best type of life cover for a divorced parent with young dependents

  • Arranged the policy, trust documentation, and communication with both parties to ensure everything was clearly understood

Could We Help You?

Divorced or separated but still supporting your children?
Family Income Benefit could be the quiet hero in your financial plan. Let’s chat about how you can protect what matters most.

📞 Get in touch with J Finance today.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Protection policies have no cash in value and cover will cease if premiums are not maintained.