A family maintenance policy combines which combination of coverages?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A family maintenance policy combines a permanent (whole life) policy on the primary wage earner with a level term rider. If the breadwinner dies during the term, the family receives a level monthly income for the full specified maintenance period, no matter when death occurs during that period, and the whole life death benefit is also paid. (By contrast, a family income policy uses a decreasing term rider: the later the insured dies during the term, the shorter the remaining income payments.) This protects the family's income stream during the years of greatest need.
Why the other options are wrong
- B) A family maintenance policy is not built around an endowment at age 65; its focus is death protection during the maintenance period.
- C) The primary coverage is on the breadwinner, not on the children; the children are protected through the income rider.
- D) Paying on the first death of two spouses describes a joint life first-to-die policy, not a family maintenance policy.
Memory hook
Family maintenance = permanent base plus a temporary income tail. The check keeps coming while the kids grow.