Tennessee Insurance Practice Exam 2025 - Free Insurance Practice Questions and Study Guide.

A family maintenance policy is specifically designed to provide an income stream to the beneficiaries for a designated period following the insured's death. This type of policy combines elements of both life insurance and annuities. Upon the death of the insured, the beneficiaries receive regular income payments for a predetermined duration, which can help maintain their standard of living during a time of loss.

The family maintenance policy not only offers a death benefit but also ensures that dependents have a steady income flow for an extended period, addressing both immediate financial needs and ongoing expenses. This structure makes it an ideal choice for individuals wanting to secure a support system for their loved ones after their passing.

Other types of policies, such as term life, whole life, and universal life, do not provide an income stream for a set duration that begins specifically upon death. Instead, they are structured differently, with term life offering death benefits only for a specified term without any ongoing income provision. Whole and universal life policies focus on lifelong coverage with a cash value component, but they do not offer the same structured income payout that a family maintenance policy does.