What does a family maintenance policy provide in the event of the breadwinner's death?

A family maintenance policy is specifically designed to provide financial support to a family following the death of the primary income earner, commonly referred to as the breadwinner. This type of policy combines features of both whole life and term insurance.

Upon the breadwinner's death, the family maintenance policy typically offers a specified death benefit that pays out in a lump sum, akin to whole life insurance, ensuring that beneficiaries receive a permanent financial asset. In addition, it also includes a term life insurance benefit that pays a series of income payments over a designated term, helping to support the family through that immediate period of need. This dual structure aims to provide comprehensive coverage that ensures ongoing financial stability for the family while still building cash value over time.

This holistic approach addresses the short-term and long-term financial needs of the dependents, making it a suitable choice for families reliant on the breadwinner's income.