Page 12 - Life Assurance
P. 12
Package contracts modify the basic types of
life insurance to meet specialized needs. The
more common packages are described in the
following paragraphs:

5/2/1 Family Income Policy:

A family income policy is a combination of
decreasing-term insurance and ordinary life
insurance. It is nearly always issued on a level-
premium basis. As its name suggests, the family
income policy is designed to provide a large
amount of pure protection during a time when
children are young and at the same time to
provide some permanent insurance.

The base of the contract is usually ordinary
life insurance, to which is added a decreasing
term rider. The family income policy may be
composed, for example, of L.E 10,000 ordinary life
insurance plus the same value of a decreasing- term
insurance.

The term rider is decreasing because the
period during which the income would be
payable in the event of death decreases with
time. For example, let us say that Magdi takes out a
L.E 10,000 family income policy with a 20-years

112 Life51/life/life 08
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