The policy of family income is one of the myriad of insurance that supplements an income from home. Covers the critical period when children are growing up. As a class of life insurance, this policy combines ordinary life and decreasing term insurance.
The policy of family income gives regular income payments until the period applied if the insured party dies before the end of the period. If the insured party is still living after the specified period, he will receive a value or fair face amount of the policy. The main thrust of the policy of family income to ensure financial assistance to children during their formative years.
From the perspective of families and society, children without enough financial aid during their growing years are the hardest to bear. Thus, the intent of the policy of family income is to carry out the safety of these children with the unfortunate events experienced by their parents or guardians. This will give them the best chance of living a normal childhood and move into adulthood with equal opportunities compared to other children.
Terms of the policy of family income
The basic foundation of the policy of family income is regular benefits during the period of time covered by the growth of children. Generally, the insurance term is twenty years. After this twenty year period, the policy holder will receive the full face amount of the policy. As an example, given the face value of a policy of $ 150,000 in income in periods of 20 years, the part of policyholders will receive $ 150,000 at the end of term of 20 years.
If the insured party dies within the specified period, usually the beneficiary will receive 1% of face value each month – in this case, $ 1,500 per month for the remainder of the term of insurance. At the end of the period, the beneficiary will also receive $ 150,000, which is the face amount. This term insurance is designed to increase the monthly income of families left in the insured individual.
The various life insurance policies on the market offer decreasing term insurance because the house considered the need to provide for his family at the center of child-rearing. This policy rider is known as family income or policy of supporting the family.