Family income policies
Selected Specialized/Hybrid Policies: Family Income Policies
Description Premiums Cash Value Advantages Disadvantages Uses
A single policy combining whole life and decreasing term coverage; Provides family income after the death of the insured for a set term of years measured from policy inception Level throughout policy term Guaranteed cash build-up will be slower than for traditional whole life because part of the premium is paying for term protection Provides a stream of income upon death of insured; Cheaper than Family Maintenance policy Not very flexible; Amount of family income need may not be foreseeable at purchase; May result in overinsuring children and underinsuring wage earners Provide income protection while children are expected to be dependents