Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A family income benefit rider attached to a life insurance policy provides:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The family income benefit rider pays the beneficiary a monthly income if the insured dies during the rider's stated period, and then pays the policy's face amount when that period ends. It converts the death benefit into an income stream during the years when the family's needs are greatest — such as while children are being raised — before releasing the principal. This structure helps replace the insured's ongoing income and avoids the family outliving a lump sum too early.
Why the other options are wrong
- B) Paying double the face amount on accidental death describes an accidental death benefit rider, not a family income rider.
- C) Waiving premiums on the insured's disability describes a waiver of premium rider; child illness is not the trigger.
- D) Covering all family members under one contract describes a family plan policy, not an income rider on the insured's life.
Memory hook
Family income = rent paid monthly by the policy during the child-raising years, then the full principal drops at the end.