A family income rider added to a life insurance policy is designed to:

Why A is correct

The family income rider provides a monthly income benefit for the remainder of a stated period, such as 20 years from the date the policy was issued, if the insured dies during that period. The family receives income to replace lost earnings, typically in combination with a base policy; if the insured dies after the period ends, only the base death benefit is paid. The rider is structured like a decreasing-term protection designed around the family's income needs while children are dependent.

Why the other options are wrong

• B) Doubling the benefit for accidental death is the function of the accidental death benefit rider, a separate rider.
• C) Waiving premiums to protect a child's policy is the payor rider, which applies when the premium payer dies.
• D) Automatically increasing coverage at a stated age is not a function of the family income rider.

Memory hook

Family income rider = a monthly paycheck to the family if the breadwinner dies early in the period.

Why A is correct

A family income rider adds a decreasing term layer to the base policy that pays the family a monthly income for a specified period — such as 10 or 20 years — if the insured dies during that period. It is often used to cover the years while children are dependent. A payor rider instead protects a juvenile policy by waiving premiums if the adult who pays them dies or becomes disabled. A cost-of-living rider increases benefits with inflation; a return-of-premium rider refunds premiums if no death claim occurs within the term.

Why the other options are wrong

• B) A payor rider protects a juvenile policy by waiving premiums if the adult premium payer dies or becomes disabled. It does not pay monthly income to the insured's family.
• C) A cost-of-living rider increases the death benefit periodically to offset inflation. It does not provide the family a monthly income stream during the dependent years.
• D) A return of premium rider refunds the premiums paid if no death claim occurs during the term. It is a money-back feature, not an income benefit paid to the family.

Memory hook

Family income = a paycheck from the policy to the family during the dependent years.

Why A is correct

A family income rider is a decreasing term rider attached to a base life policy. If the insured dies during the income period, the beneficiary receives a monthly income for the remainder of the period, typically until children reach a certain age or for a stated number of years. This provides income replacement during the dependency years when the family most needs support. The base policy separately pays its own death benefit. The rider is designed for young families that need income protection while children are still dependent and the family's earning capacity is critical.

Why the other options are wrong

• B) Adding a second insured describes a family rider or joint-life coverage, not a provision that pays periodic income to a beneficiary. The family income rider focuses on income replacement rather than a second life.
• C) The rider pays periodic income rather than a lump sum; the base policy, not the rider, pays the lump sum death benefit at death. The income stream is the rider's contribution to the plan.
• D) The rider's income payments diminish over time as the income period shortens, but the base death benefit is not reduced as children age. The decreasing element applies to the term rider, not the base coverage.

Memory hook

Family income rider: monthly paychecks to your family while the kids still need them.