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P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

A.Family Benefit policy
B.Family Maintenance policy
C.Family Income policy
D.Family Survivor policy

User James Reed
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1 Answer

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Final answer:

P should purchase a Family Maintenance policy because it provides a monthly income for a specified period and a lump sum payment at the end of that period, aligning with P's requirements.

Step-by-step explanation:

P is looking for a life insurance policy that provides a stated monthly income for 20 years to his beneficiaries after his death, as well as a lump sum payment at the end of that period. The type of life insurance policy that would best suit P's needs is a Family Maintenance policy.

Unlike a Family Income policy, which only pays a monthly benefit for a specified period, or a Family Survivor policy, which may offer different benefits, the Family Maintenance policy typically provides both monthly income and a lump sum benefit, often meant to cover education or other specific needs after the monthly payments end.

User LeeMobile
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