Page 14 - Life Assurance

permanent policy already issued on the life of
the insured.

5/2/2 Family Maintenance Policy:

The family maintenance policy is a
combination of ordinary life insurance and level
term and should not be confused with the family
income policy. In both the family income and the
family maintenance policies there is a base of
protection in the ordinary life portion, but in the
family maintenance policy the term protection
does not decrease during the period of its
existence.

Suppose, in the example above, Magdi has a
family maintenance policy instead of a family income
policy, the policy has a 20-year term rider attached.
If Magdi dies anytime within 20 years after taking
out the policy, his widow receives an income for a
full 20 years, and at the end, the face amount of the
policy. If Magdi survives the 20 years, the rider
expires, as it did in the case of the family income
policy, and Magdi may continue the base policy
indefinitely.

5/2/3 Specials:

Many insurers issue specials-life insurance
contracts with a specified minimum face amount
at reduced prices. The economy rates involved
in specials may stem from a number of sources.

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