Can the policy pay out a regular income rather than a lump sum?

If you opt for family income benefit, then yes, your beneficiaries will receive an income much like a salary after your death.

This is often easier to manage than a lump sum because you don’t need to worry about investing or management fees.

What’s more, premiums are typically cheaper because the longer you live, the less the insurer has to pay. If, for instance, you take a £30,000-a-year policy for 25 years and died in year 20, the insurer would only pay for five years.