Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A family income (family maintenance) life insurance policy is designed primarily to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A family income or family maintenance policy combines a small base policy with a decreasing term rider that pays a monthly income until dependent children reach a designated age. The family income version's term rider is decreasing; the family maintenance version is level. Both exist to replace the breadwinner's income during the child-raising years, which is the special-coverage purpose described in objective LIFE-II.B.4.
Why the other options are wrong
- B) The policy does pay a lump-sum base benefit, but its distinguishing feature is the monthly income component for the family.
- C) These policies are primarily income protection for survivors, not retirement cash-value accumulation vehicles.
- D) Paying off the mortgage is the job of mortgage redemption insurance, not a family income policy.
Memory hook
Family income = a paycheck that keeps arriving after death, until the kids grow up.