Family Income Rider

What Does Family Income Rider Mean?

A family income rider is a type of life insurance death benefit that provides beneficiaries with monthly payments equal to the insured’s monthly income after the policyholder’s death. This benefit is designed to replace the earning power lost due to the death of a family’s breadwinner, helping to maintain the family’s financial stability during a difficult time.

Insuranceopedia Explains Family Income Rider

Family income riders typically must be activated within a specified timeframe, or they may expire. For instance, a beneficiary might be required to enact the family income rider and begin receiving the death benefits within one year of the policyholder’s death, or they risk losing those benefits. Therefore, it is crucial for beneficiaries to claim their death benefits promptly to ensure they receive the support intended by the policy.