Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A family income rider attached to a whole life policy provides what type of benefit?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A family income rider is a decreasing term rider added to a permanent policy. If the insured dies while the rider is in force, the beneficiary receives a monthly income for the number of years remaining in the rider's term, replacing the insured's earnings during the family's period of greatest need. The rider's coverage amount decreases each year because the number of remaining monthly payments shrinks. If the insured survives the rider term, the rider simply expires and the underlying whole life policy continues with its own coverage.
Why the other options are wrong
- A) The family income rider pays a stream of monthly income over the remaining term, not a single lump sum equal to the face amount plus rider amount.
- B) The rider is pure death protection; it does not build or guarantee any investment return on cash value.
- D) The rider covers the insured's family, not the insured's parents, and is tied to the insured's death.
Memory hook
Family income = a paycheck stream, not one fat check.