A family income policy is best described as whole life insurance combined with:

Why A is correct

A family income policy pairs a permanent whole life base with a separate decreasing term rider. If the insured dies during the rider's term, the beneficiary receives a monthly income for the remainder of that term, and the whole life base then pays the full face amount when the income period ends. The rider's decreasing benefit mirrors the shrinking period during which the family needs income replacement, and the level premium for the decreasing coverage makes the product affordable. This structure is a high-frequency exam concept.

Why the other options are wrong

• B) The rider decreases, not increases, over the term, and term insurance does not build cash value by design. The rider is commonly used to replace lost income during the period when children are still dependent.
• C) A disability income rider pays monthly benefits to the insured during disability, not income to survivors after the insured's death. Term insurance, including the rider in this product, is designed to provide protection rather than accumulate savings.
• D) An accidental death rider pays an additional sum if death is accidental; it does not create a monthly income stream for the family. That rider protects the insured's own income during disability, not the survivors' income after death.

Memory hook

Family income = permanent base plus decreasing term income. Cash flow first, lump sum at the end.