What are the three phrases of coverage against permanent loss of income when an income earner dies?

The correct answer identifies the three distinct phases of coverage that address the financial impact on dependents when an income earner dies: the Readjustment period, Dependency Period, and Survivor life income needs.

The Readjustment period refers to the time immediately following the death of the income earner. During this phase, the surviving dependents may face significant emotional and financial changes as they adapt to the loss. This period often involves immediate expenses related to the funeral and other transitional costs, allowing the family some time to stabilize.

The Dependency Period extends beyond the initial shock of loss and covers the duration during which the dependents rely on the deceased's income for their basic living needs. This phase is crucial because it considers how long it will take for the survivor(s) to become self-sufficient or less dependent on the deceased's financial support.

Finally, Survivor life income needs encompass the long-term financial requirements of the dependents. This involves assessing their future income needs beyond the short-term financial assistance provided during the earlier phases.

By correctly identifying these phases, individuals can better understand how insurance products are designed to provide financial support throughout the varying stages of loss, adapting to immediate and long-term needs of the surviving family members.