Family Income Rider
What Does Family Income Rider Mean?
A family income rider is a type of life insurance death benefit in which beneficiaries receive monthly payments that are equal to the insured's monthly income. These benefits are administered following the death of the policyholder. The benefit is meant to be equivalent to the earning power lost by the death of one of the family's breadwinners.
Insuranceopedia Explains Family Income Rider
Family income riders typically have to be enacted within a certain amount of time, or else they may expire. So, for example, under the terms of the life insurance policy, a beneficiary may be required to enact the family income rider and start receiving the death benefits within one year or else face expiration of the benefits. So, it is important for beneficiaries to claim their death benefits promptly.