Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A family income policy provides the beneficiary with a monthly income for the remainder of a stated income period (such as 20 years from the policy's issue date) if the insured dies during that period, PLUS:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A family income policy combines a base permanent or term life policy with a family income rider. If the insured dies during the income period, the beneficiary receives monthly income until the period ends, and the base policy's face amount is also payable (often as a lump sum when the income payments cease). This arrangement replaces the insured's earning power during the years when the family needs it most.
Why the other options are wrong
- B) Premium waiver is a separate rider triggered by the insured's disability, not a built-in feature of a family income policy.
- C) The cash value is not paid at death; the death benefit is the face amount plus the family income rider payments.
- D) Accidental death benefits are a separate rider; they are not automatically part of a family income policy.
Memory hook
Family income = monthly checks during the danger years, then the face amount on top. Double coverage for the growing family.