The combination of whole life and what type of insurance is known as a family income policy?

A family income policy combines whole life insurance with decreasing term insurance. The whole life component provides a permanent death benefit and grows cash value over time, while the decreasing term insurance aspect provides an additional benefit that decreases over time, typically aligned with a certain period, such as the years when dependents are financially most vulnerable.

This structure is particularly beneficial for families, as it ensures that if the insured passes away, their beneficiaries will receive a substantial income for a specified period, making it easier to cover daily living expenses or outstanding debts. As the family's financial needs may lessen over time (for example, as children grow up and financial responsibilities decrease), the decreasing term coverage reflects this by paying out less as time goes on, while the whole life component remains in force and maintains its cash value.

The other types of insurance mentioned do not fit the specific definition of a family income policy. On their own, universal, level term, and variable life insurance do not combine the aspects of whole life with a decreasing benefit structure in the same way as a family income policy does.