Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A whole life policyowner adds a family income rider. If the insured dies during the rider's coverage period, the rider will:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A family income rider is a decreasing term rider attached to a permanent policy. If the insured dies while the rider is in force, the beneficiary receives monthly income for the number of years remaining in the rider's period, such as 10 or 20 years. In addition, the base whole life policy's face amount is paid at death. The rider effectively replaces the income the insured would have earned. It does not alter cash value, does not waive premiums (that is the waiver of premium rider), and does not double the death benefit.
Why the other options are wrong
- B) The rider provides income at death; it has no effect on the base policy's cash value accumulation.
- C) Waiving future premiums is the function of a waiver of premium rider, not a family income rider.
- D) The rider pays monthly income for the remaining period, not a lump sum that is a multiple of the face amount.
Memory hook
Family income rider = an income pipeline for the family for a set number of years after the wage earner dies.