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Family Income Rider

What is 'Family Income Rider'

An addition to a life insurance policy that provides the beneficiary with an amount of money equal to the policyholder's monthly income if the policyholder dies. A family income rider is a type of death benefit, and specifies the term for the additional coverage. It eventually expires if it is not enacted.

Explaining 'Family Income Rider'

In some cases, the beneficiary may choose a lump sum rather than receiving monthly payments. Younger wage-earners will typically choose a longer length of time for coverage because they have more working years left before retirement, and would therefore cause a larger financial hardship to their families if they died.


Further Reading


School finance reform and voluntary fiscal federalism
www.sciencedirect.com [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

Income distributional effects of urban transit subsidiesIncome distributional effects of urban transit subsidies
www.jstor.org [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

Demand for public transport in Germany and the USA: an analysis of rider characteristicsDemand for public transport in Germany and the USA: an analysis of rider characteristics
www.tandfonline.com [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

Financial issues associated with having a child with autismFinancial issues associated with having a child with autism
link.springer.com [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

Parent driver characteristics associated with sub-optimal restraint of child passengersParent driver characteristics associated with sub-optimal restraint of child passengers
www.tandfonline.com [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

A Documentation of the Philippines' Family Income and Expenditure SurveyA Documentation of the Philippines' Family Income and Expenditure Survey
www.econstor.eu [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …

Environmental awareness and attitudes of student teachers: An empirical researchEnvironmental awareness and attitudes of student teachers: An empirical research
www.tandfonline.com [PDF]
… the public investment in car-ownership assistance on employment and measures of family well-being … and test other local transportation strategies to increase opportunities for low-income workers … “The Price Is Wrong: Getting the Market Right for Working Families in Philadelphia …



Q&A About Family Income Rider


What do you need to know about a life insurance contract before purchasing one?

You should know how much coverage you need and what type of policy will best suit your needs.

What is a family income rider?

A family income rider is an addition to a life insurance policy that provides the beneficiary with an amount of money equal to the policyholder's monthly income if the policyholder dies.

Who offers family income riders for little or no cost to policyholders?

Insurance companies offer family income riders for little or no cost to policyholders.

Why are insurance companies willing to offer these riders at little or no cost?

The death benefits are earning interest while held by the insurance company as distributions are made.

How many working years are left before retirement?

Younger wage-earners will typically have more working years left before retirement, and would therefore cause a larger financial hardship to their families if they died.

How does an insurance company make money off of offering this rider?

The insurance company makes money by investing the death benefit until it is needed.

Who may choose a lump sum instead of receiving monthly payments?

The beneficiary may choose a lump sum rather than receiving monthly payments.

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