Supplementing Whole Life Insurance with the Family Income Benefit Rider

By Tes Kurtz on January 22nd, 2010

Whole life insurance, also known as permanent insurance, provides insurance protection for your entire life. As long as you maintain your policy, by making your premium payments, you may be able to provide financial security for your family through lifetime insurance coverage.

In addition to the insurance benefit, you may be able to provide an additional financial safeguard through the family income benefit rider. An insurance policy with this rider could provide your family with an insurance benefit and monthly income for a predetermined length of time.

What Is a Rider?

A rider is a clause added to your policy, for an extra fee, which changes the terms or coverage of your basic life insurance policy.

The Family Income Benefit Rider

The family income benefit rider may provide a continuous, reliable source of monthly income after the policyholder's death. This monthly income is in addition to the death benefit, which is the amount of money beneficiaries receive in the event of the policyholder's death.

When you add the family income benefit rider to your whole life insurance policy, you can choose the number of years you would like your family to receive the security of a monthly income. As time goes by, and you grow older, this specified duration of time decreases, and eventually expires.

How Does the Rider Work?

With the family income benefit rider in place, beneficiaries receive the first monthly installment immediately following the policyholder's death.

The main goal and primary benefit of adding this rider to your whole life insurance policy is to ensure that your family's income remains stable and is maintained at a desirable level. Depending on the terms of the rider, your beneficiaries have the option to receive a lump sum payment of the added benefit, rather than receiving it in monthly increments.

The family income benefit rider could be a valuable whole life insurance supplement for families with one income source. This life insurance rider may prevent your family from suddenly being cut off from all sources of income.

If you are interested in adding the family income benefit rider to your new whole life insurance policy, obtain free life insurance quotes from qualified agents. Just enter your zip code to get started, and add that extra layer of security to your policy.

Insurance policies, associated riders, and features may not be available in all states. Additionally, some riders may have additional fees and expenses associated with them. Speak to an insurance agent, or your insurer, for additional information on your life insurance policy and/or rider.

Source :
Ashish Gupta, • Go for need-based riders • Jan 03, 2010 • India Times • http://economictimes.indiatimes.com/features/financial-times/Go-for-need-based-riders/articleshow/5406227.cms

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