A family income rider added to a whole life policy provides the insured's survivors with what type of benefit during the income period?

Why A is correct

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.

Why the other options are wrong

• The benefit is paid as a monthly income during the period, not as a single lump sum at the end. The lump-sum portion comes from the base whole life policy's death benefit.
• Tying benefits to the consumer price index is the function of a cost-of-living rider, not a family income rider, which pays a level monthly amount during the income period. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.
• Waiving premiums is a separate rider triggered by disability, not by age; a family income rider does not waive premiums when the insured turns 65. This choice does not fit the arrangement described in the question, so it is clearly not the right option to choose.

Memory hook

The family income rider delivers monthly checks for the rest of the period.