Term Rider

Family income rider — A family income rider is a level-premium, decreasing term rider attached to a whole life or other permanent policy. If the insured dies during the rider's term, the beneficiary receives a stated monthly income until the term's ending date, and the base policy's death benefit is paid separately, usually in a lump sum. The income feature is designed to replace the insured's earnings while children are dependent, and the amount of remaining protection decreases as the term shortens. This distinguishes it from riders that pay a lump sum or increase coverage.

National insurance concept

A monthly income for the remainder of the period if the insured dies during it — A family income rider pays the insured's family a monthly income for the remainder of a stated period if the insured dies during that period. For example, a 20-year family income rider pays monthly benefits until 20 years from the policy's issue date, after which the rider expires and only the base policy's death benefit remains payable. The rider's cost is relatively low because the monthly income is a fraction of the face amount and the exposure is limited to the income period. It does not replace the death benefit, which is still paid under the base policy.

National insurance concept