Family Maintenance Policy
A combination of whole life and level term paying monthly income for a fixed period if death occurs during the term, with level rather than decreasing income.
Drill all 803 terms as flip-card flashcards in the Exam Engine →
Practice This Concept
A family maintenance policy combines which combination of coverages?
A whole life policy on the breadwinner plus a level term income rider providing monthly income to dependents for a set period — A family maintenance policy combines a permanent (whole life) policy on the primary wage earner with a level term rider. If the breadwinner dies during the term, the family receives a level monthly income for the full specified maintenance period, no matter when death occurs during that period, and the whole life death benefit is also paid. (By contrast, a family income policy uses a decreasing term rider: the later the insured dies during the term, the shorter the remaining income payments.) This protects the family's income stream during the years of greatest need.
National insurance concept
A family income (family maintenance) life insurance policy is designed primarily to:
Pay a monthly income to the surviving family, typically until dependent children reach a specified age — A family income or family maintenance policy combines a small base policy with a decreasing term rider that pays a monthly income until dependent children reach a designated age. The family income version's term rider is decreasing; the family maintenance version is level. Both exist to replace the breadwinner's income during the child-raising years, which is the special-coverage purpose described in objective LIFE-II.B.4.
National insurance concept
Practice all life insurance questions →