How do family maintenance policies differ from family income policies?

Family maintenance policies and family income policies are designed to provide financial support for families, but they do so under different structures and timeframes.

Family maintenance policies blend life insurance and income replacement by combining a term insurance component with a cash benefit that is paid to the beneficiary over a specific period following the insured's death. This structure is intended to maintain the family's income level for a fixed duration, ensuring that the family's financial needs are met for that specified period. This aspect makes it clear that these policies focus on maintaining income consistency over time rather than solely providing a lump-sum payment.

In contrast, family income policies primarily focus on providing a regular income stream for a limited time after the policyholder's death. It offers a fixed monthly benefit until the end of the term rather than maintaining income through a combination of insurance payout and cash benefits.

Thus, the correct choice highlights the key characteristic of family maintenance policies, which is their emphasis on sustaining income for a particular duration, ensuring that families can meet their financial obligations during a critical period of adjustment after losing a breadwinner.