How is a family maintenance policy structured?

A family maintenance policy is structured to provide a combination of benefits that ensure both a lump-sum payment and ongoing income support for the family in the event of the insured’s death. It blends whole life insurance with either level or decreasing term insurance. The whole life component guarantees a death benefit and builds cash value over time, while the term component offers additional coverage for a specific period, addressing immediate family income needs.

The structure of this policy is designed to provide financial security for the entire family, rather than just one segment of it, ensuring that loved ones receive a stable financial foundation both at the time of the insured's passing and for a set period thereafter. This approach is particularly beneficial for families who require both the long-term security of whole life insurance and the additional protection of a term policy to cover expenses during the critical years of a child's upbringing or during the pay-off period of a mortgage, for example.