What is a family income policy in insurance?

Definition. Family Income Life Insurance — a life insurance policy that combines whole life with decreasing term insurance. In the event of the insured’s death prior to a specified date, the beneficiary is paid a monthly income benefit.

What is family income policy?

A family income policy, sometimes called a family income benefit (FIB), is a form of term life insurance policy. The policy is active for a certain number of years (the term) and pays a death benefit if you die during the term or expires if you outlive the policy. FIB benefits are paid monthly.

What is a major difference between a family income policy and a family maintenance policy?

-$1,000 of term life insurance coverage on each child. -Family income policies use decreasing term to fund a potential income period that decreases as the policy ages. –Family maintenance policies use level term insurance to maintain income for a level period of time from the time of death.

What is the difference between income protection and life insurance?

Life insurance pays a lump sum of cash in the event you either pass away or are diagnosed with a terminal illness. Income protection may pay a death benefit in the event the person who holds the policy dies, but its main function is to insure your income – not your life.