Page 13 - Life Assurance

reasing-term rider when he is age 25 and his
youngest child is age one.

The income is payable to his family from a
period dating from his death until the time he would
have been 45 or until the youngest child is 21. If
Magdi dies 10 years after the policy is issued, the
payments are made for 10 years. If he dies 15
years after the policy is issued, the payments are
made for five years, after which the L.E 10.000
payable under the ordinary life insurance portion is
settled. At the end of 20 years, if Magdi has
survived the period, the term rider expires and this
portion of the policy is terminated. The premium is
usually reduced accordingly and Magdi may
continue the ordinary life insurance portion as long
as he wishes.

The family income policy is one of the most
popular contracts of life insurance sold because
it constitutes a small program of insurance. It
represents a balanced solution to the twin needs of
temporary and permanent life insurance. The term
rider is generally available for varying periods-5, 10,
15, or 20 years -so that income may be provided
until the children reach a designated age.

Some insurers offer the term rider by itself
without the necessity of the insured purchasing any
permanent insurance along with it. Many insurers
will also issue a term rider that may be attached to

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