What is a Family Income Life policy a combination of?

A Family Income Life policy combines the features of Whole Life and Decreasing Term insurance. This type of policy provides a death benefit that ensures financial protection for beneficiaries, consisting of whole life coverage that lasts the insured's lifetime, while also offering a decreasing term component that provides additional income during a specified period after the insured's death.

The whole life portion ensures that there is a permanent death benefit and a cash value accumulation over time, which can be an asset to the policyholder. The decreasing term part is designed to cover a certain time frame, typically aligned with financial responsibilities that may diminish over time, like raising children or paying off a mortgage.

Thus, this combination provides both long-term security and short-term financial assistance, making it an effective solution for families needing income replacement during critical years after a loss. This is why the combination of Whole Life and Decreasing Term is the defining characteristic of a Family Income Life policy.