A family policy on a husband and wife typically provides:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A family policy combines a whole life policy on the parents, typically the breadwinners, with small term insurance riders on each child, all under one contract with one premium. This special coverage design lets a family obtain permanent protection for the parents plus modest coverage for the children in a single policy. The children's coverage is usually term insurance that can be converted to permanent coverage at specified ages, often without evidence of insurability. It is an economical way to cover an entire family and is one of the special coverage forms listed in the exam outline. The parents' coverage carries the main face amount and builds the cash value.
Why the other options are wrong
- Coverage is not equal among family members: the parents carry the main whole life coverage while the children receive smaller term amounts.
- The parents receive whole life coverage, not just term, and the children also receive term coverage under the same policy.
- A family policy is one individual policy owned by the parents; it is not a group policy, and the children do not own it.
Memory hook
Family policy: parents get the whole life, children ride along on small term riders.