Which aspect of family income benefit is notable in terms of tax?

The notable aspect of family income benefit in terms of tax is that its payments are tax-free. This means that the financial support received through a family income benefit policy, which is designed to provide regular income to beneficiaries in the event of the policyholder's death, does not attract income tax. This feature ensures that the intended financial support passed on to the family can be used entirely for living expenses or other needs without the reduction of tax liabilities.

This tax-free status highlights the policy's role in providing peace of mind and financial security, as families can rely on consistent income during a challenging period without worrying about tax deductions on the benefits received.