What do family income benefit policies primarily provide?

Family income benefit policies primarily provide a regular income to families following the death of the policyholder. This type of insurance is designed to offer financial support over a specified period, ensuring that the dependents of the deceased have a steady source of income to maintain their living standards during a difficult time.

When the policyholder passes away, instead of a lump sum payment, the policy pays out a predetermined amount at regular intervals, typically monthly or annually, which helps the family cover ongoing expenses such as mortgage payments, bills, and daily living costs. This regular income can be crucial for families who rely on the policyholder's earnings and need financial stability after their loss.

Other types of policies may focus on different objectives, such as offering a one-time payout or investment opportunities, but family income benefit policies are specifically structured to provide ongoing financial support to assist surviving family members.