If an insured individual combines a whole life insurance policy with decreasing term coverage, what type of policy do they have?
Explanation
Answer: C - If an insured individual combines a whole life insurance policy with decreasing term coverage they have a family income policy. The family income policy, while uncommon, provides temporary protection and permanent coverage, whereby an income is to be paid when the family breadwinner dies. When the policy is purchased, payout periods are determined and scheduled to last until the income needs of the family diminish, typically defined as 10,15 or 20 years.
