Which type of insurance policy provides whole life coverage for parents and term coverage for children?

Which type of insurance policy provides whole life coverage for parents and term coverage for children?

• A. Family income policy
• B. Family maintenance policy
• C. Family protection policy
• D. Survivorship life insurance

Answer: (C)

A family protection policy is designed to provide whole life coverage for adult members of a family, typically the parents, while also including term life coverage for their dependent children. This structure allows parents to have permanent life insurance that accumulates cash value and offers lifelong protection, while the term coverage for children provides financial support in the event of their premature death, ensuring that families have necessary resources during a challenging time without the financial burden of permanent coverage for children. In contrast, other types of policies listed serve different purposes. For example, a family income policy primarily focuses on providing income to the family in case of the breadwinner's death, while a family maintenance policy ensures that the family receives both a death benefit and an income during the term of coverage. Survivorship life insurance, on the other hand, covers two lives, typically parents, and pays out the death benefit only after both insured individuals have passed away. These distinctions highlight why the family protection policy is the most appropriate choice for offering a combination of whole and term coverage within a family context.

A family protection policy is designed to provide whole life coverage for adult members of a family, typically the parents, while also including term life coverage for their dependent children. This structure allows parents to have permanent life insurance that accumulates cash value and offers lifelong protection, while the term coverage for children provides financial support in the event of their premature death, ensuring that families have necessary resources during a challenging time without the financial burden of permanent coverage for children.

In contrast, other types of policies listed serve different purposes. For example, a family income policy primarily focuses on providing income to the family in case of the breadwinner's death, while a family maintenance policy ensures that the family receives both a death benefit and an income during the term of coverage. Survivorship life insurance, on the other hand, covers two lives, typically parents, and pays out the death benefit only after both insured individuals have passed away. These distinctions highlight why the family protection policy is the most appropriate choice for offering a combination of whole and term coverage within a family context.